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Price Elasticity of Supply Explained

- Supply refers to the quantity of products that producers are willing and able to sell at various prices. - Price elasticity of supply measures the response of the quantity supplied by producers to changes in price. It is calculated using the percentage change in quantity supplied divided by the percentage change in price. - Price elasticity of supply is always positive, as there is a direct relationship between price and quantity supplied. An example calculation shows a price elasticity of supply of 1.4, indicating that for a given percentage change in price there is a 1.4% change in quantity supplied.

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Owen Silva Naldoza
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77 views13 pages

Price Elasticity of Supply Explained

- Supply refers to the quantity of products that producers are willing and able to sell at various prices. - Price elasticity of supply measures the response of the quantity supplied by producers to changes in price. It is calculated using the percentage change in quantity supplied divided by the percentage change in price. - Price elasticity of supply is always positive, as there is a direct relationship between price and quantity supplied. An example calculation shows a price elasticity of supply of 1.4, indicating that for a given percentage change in price there is a 1.4% change in quantity supplied.

Uploaded by

Owen Silva Naldoza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

SUPPLY

• Dami ng produkto na handa (willing) at


kayang (able) ipagbili ng bahay-kalakal sa
iba’t-ibang presyo.
PRICE ELASTICITY OF
SUPPLY

- Paraan na ginagamit upang masukat ang


magiging pagtugon ng quantity supplied ng mga
prodyuser tuwing may pagbabago sa presyo nito.
Formula

ᵋs=
%△𝑄𝑠
%△𝑃
Kung saan ang:
𝑸𝟐−𝑸𝟏 𝑷𝟐−𝑷𝟏
% △ 𝑸𝒔 = ( ) x 100 % △ 𝑷𝒔 = ( ) x 100
𝑸𝟏+𝑸𝟏/𝟐 𝑷𝟏+𝑷𝟏/𝟐
Quantity Supplied (Qs) or % △ 𝑸𝒔 − 𝐝𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐭 𝐯𝐚𝐫𝐢𝐚𝐛𝐥𝐞
Pagbabago sa Presyo o % △ 𝑷𝒔 − 𝐢𝐧𝐝𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐭 𝐯𝐚𝐫𝐢𝐚𝐛𝐥𝐞

Price Elasticity of Supply – palaging positibo


- may direktang (direct) relasyon sa presyo
- hindi na gagamit ng absolute value
Halimbawa
Q1=100 P1=30
Q2=150 P2=40

FORMULA:

ᵋ s=
%△𝑸𝒔
%△𝑷
𝑸𝟐−𝑸𝟏
% △ 𝑸𝒔 = ( ) x 100
𝑸𝟏+𝑸𝟏/𝟐
𝟏𝟓𝟎−𝟏𝟎𝟎
= ( ) x 100
𝟏𝟎𝟎+𝟏𝟓𝟎/𝟐
𝟓𝟎
= ( ) x 100
𝟐𝟓𝟎/𝟐
𝟓𝟎
= ( ) x 100
𝟏𝟐𝟓
= 40 %
𝑷𝟐−𝑷𝟏
% △ 𝑷𝒔 = ( ) x 100
𝑷𝟏+𝑷𝟏/𝟐
𝟒𝟎−𝟑𝟎
= x 100
𝟑𝟎+𝟒𝟎/𝟐
𝟏𝟎
= x 100
𝟕𝟎/𝟐
𝟏𝟎
= x 100
𝟑𝟓
= 28.57 %
ᵋ s=
%△𝑄𝑠
%△𝑃

𝟒𝟎%
=
𝟐𝟖.𝟓𝟕%

Price Elasticity of Supply = 1.4


Price Elasticity of Supply ng Tinapay
Bagong presyo -------------- P 5.00
Bagong dami ---------------- 450
Dating Presyo --------------- P 4.50
Dating dami ----------------- 350
Price Elasticity of Supply ng Kwek-Kwek
Bagong presyo -------------- P 5.00
Bagong dami ---------------- 1000
Dating Presyo --------------- P 4.50
Dating dami ----------------- 950
Price Elasticity of Supply ng Banana Cue
Bagong presyo -------------- P 5.00
Bagong dami ---------------- 1000
Dating Presyo --------------- P 2.50
Dating dami ----------------- 500
Bakit mahalagang pag-aralan natin
ang price elasticity of supply?

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