Kinds or types and curves of elasticity of supply ~ Supply elasticity or elasticity of supply can be interpreted as the level of flexibility or the level of sensitivity of supply to price changes. This quantity shows the effect of price changes on the size of the quantity of goods offered or shows the level of sensitivity of changes in the quantity of goods offered to changes in the price of goods.

1. Types of Supply Elasticity

Like the elasticity of demand, the elasticity of offer There are also five kinds, namely elastic supply, inelastic supply, unitary supply or normal supply, perfectly elastic supply, and also perfectly inelastic supply. For more details, take a look at the following table of offers:
Types of Supply Elasticity

Information:

% Qs : Percentage change in quantity of the goods offered / supply

% Ps : Percentage change of the price of goods

From the table above, elastic supply has the formula E> 1 where this supply usually occurs in luxury goods. Inelastic supply has the formula E < 1 where this supply usually occurs in the need for basic or primary goods. Furthermore, unitary supply or normal supply with the formula E=1 where this supply occurs on secondary goods. In a perfectly elastic supply has the formula E = ~ which usually occurs in world goods such as wheat and oil. The last offer is a perfectly inelastic supply which usually occurs in goods such as land and drinking water with the formula E=0.

a. Inelastic Offer

Inelastic supply occurs when the percentage change in supply is less than the percentage change in price. In other words, a price change of X% is followed by a change in supply of less than X%. Inelastic supply is indicated by a coefficient that is less than 1 (Ed < 1).

Inelastic Supply Occurs when the percentage change in quantity supplied is relatively smaller than the percentage change in price. Mathematically %ΔQs < %ΔP.

Usually occurs in agricultural products, because agricultural products are not easy to increase or decrease in production in the short term. Ice Coefficient < 1

Inelastic Supply Curve
Inelastic Supply Curve

b. Unitary Offer

Bidding occurs when the percentage change in supply is equal to the percentage change in price. In other words, an X% change in price is followed by an X% change in supply. This supply is indicated by the coefficient (Es) which is equal to 1 (Es = 1). This offer can occur on a variety of goods that occur at a certain time (by chance).

Occurs when a change in price is proportional to a change in the quantity supplied of the good. Mathematically %ΔQd = %ΔP.

Supply that is unitary elastic or proportionally elastic is difficult to find in everyday life, even if it actually happens by chance. Ice coefficient = 1

Unitary Supply Curve
Unitary Supply Curve

c. Elastic Offer

Elastic supply occurs when the percentage change in supply is greater than the percentage change in price. In other words, a change in price by X% followed by a change in supply is greater than X%. This supply is indicated by the coefficient (Es) which exceeds the number 1 (Es > 1).

Occurs when a change in price has a large enough effect on a change in the quantity supplied of the good. Mathematically %ΔQd > %ΔP.

Supply that is elastic or sensitive to prices can be found in everyday life, usually occurs in industrial goods that are easy to increase or decrease in production. Ice Coefficient > 1

Elastic Supply Curve
Elastic Supply Curve

d. Perfectly Inelastic Offer

This offer occurs when the percentage change in supply is 0%, while the percentage change in price is X%. In other words, even if the price changes by X%, the supply remains unchanged (0%). This supply is indicated by a coefficient (Es) of 0 (Es = 0). Goods whose supply is perfectly inelastic are goods whose quantity cannot be increased even though the price increases, for example land. This happens to goods whose production capacity is already optimum. In other words Perfectly inelastic supply occurs if there is no change in quantity supplied despite a change in price, or Qs = 0, even though P exists. Mathematically %ΔQs = 0, regardless of the change in %ΔP. The case of inelastic supply in reality is rather difficult to find in everyday life. Ice Coefficient = 0

Perfectly Inelastic Supply Curve
Perfectly Inelastic Supply Curve

e. Perfect Elastic Offer

This offer occurs when the percentage change in supply is X%, while the percentage change in price is 0%. In other words, even though the price does not change, the supply changes by X%. This supply is indicated by the coefficient (Es) which is ~ (Es = ~). Perfectly elastic goods are goods whose supply is constantly changing at a certain price. This happens because of the increase in the number of producers, the use of modern machines and others, for example: VCDs, picture books, and others.

Perfect elasticity of supply occurs if there is a change in the quantity supplied even though there is no change in price, or Qs = There is a change, even though P=0. Mathematically %ΔQs = Yes, %ΔP = 0. The case of perfectly elastic supply occurs when the supply of a good can vary even though the price of the good is fixed.

Perfectly Elastic Supply Curve
Perfectly Elastic Supply Curve

2. Supply Curve (Supply Curve)

curve offer is the line connecting the points on the price level (Price) with the number of goods/services offered (quantity supplied).

Offer table (Supply schedule) is a table that shows the quantity of a good and service offered during a certain period at various price levels, cateris paribus.

The supply curve moves from the bottom left to the top right which indicates that if the price of the good is high, the sellers/producers will sell in greater quantities.

Supply Elasticity Curve
Supply Curve
Supply Elasticity Curve
Supply Elasticity Curve
Supply Elasticity Curve
Supply Elasticity Curve

A practical way to determine the amount of elasticity without looking for the derivative of Q or Q1, namely:

Reference :

  1. Ahman, H., E., Rohmana, Y., 2007, “Economics in PIPS”, Second Edition, First Printing, Publisher Open University, Jakarta.
  2. Sukirno, S, 2011, “Introduction to Microeconomic Theory”, PT Raja Grafindo Persada, Third Edition, 26th Edition, Jakarta.
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  4. http://myilmu Lintas Hukum.blogspot.co.id/2015/12/teori-penawaran.html
  5. http://myilmu Lintas Hukum.blogspot.co.id/2016/01/pengertian-dan-factor-yang-memenaruhi.html

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