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Lesson· Elasticity and Its Applications· 8 of 14

Elasticity of Supply

Alex Tabarrok
Alex TabarrokGeorge Mason University

When is a supply curve considered elastic? What are determinants of elasticity of supply? Let's compare Picasso paintings and toothpicks. Which has an elastic or inelastic supply? For which good could you increase production at a low cost? We also go over how to calculate the elasticity of supply, including using the midpoint formula.

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