What is the simplest difference between elastic supply and inelastic supply?

Economics Jan 19, 2021

Expert Solution

The simplest difference between elasticity of supply and inelasticity of supply lies in the degree of responsiveness to price. If the coefficient is greater than 1, it is elastic, or sensitive to price changes. If the coefficient is less than 1, it is inelastic. If the coefficient is 1, it is unit elastic (a change in price will never affect it; think of medicine).

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