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What Is Supply Price Elasticity?

2010/6/11 22:27:00 28

Price Elasticity


Supply price elasticity refers to the degree of responsiveness of supply to relative price changes, that is, the percentage of increase or decrease in the supply of goods when the price of a commodity rises or falls by one percent.


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What Is The Theory Of Cobweb?

Cobweb theory: using elasticity theory to investigate the effect of price fluctuation on the next cycle production and the resulting equilibrium change is a dynamic analysis. According to this theory, the graph of supply and demand is similar to cobweb, so it is called "cobweb theory".