2.3.7.2. The Ratio Method

2.3.7.2. The Ratio Method

The co-efficient of elasticity of supply is obtained by using the ratio method as follows:

http://14.139.56.154:82/file.php?file=%2F333%2FRatio_Method.jpg

Es = Percentage change in quantity supplied

               Precentage change in price

The co-efficient of elasticity of supply varies from zero to infinity.

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Last modified: Tuesday, 14 February 2012, 7:10 AM