explain the geometric method for elasticity of supply?
The geometric method is a graphical presentation of the elasticity of the supply. This method does not involve any calculation part. Just by looking at the shape of the supply curve, we can infer about the degree of the elasticity of the supply.
|Degree of Elasticity of Supply||Shape of Supply Curve|
|Unitary Elastic Supply (Es = 1)||Supply curve originates from the origin|
|Less Elastic Supply (Es < 1)||Supply curve originates from the positive x-axis|
|More Elastic Supply (Es > 1)||Supply curve originates from the negative x-axis|
|Perfectly Inelastic Supply/Zero Elastic Supply (Es = 0)||Supply curve is vertically rising and is parallel to the y-axis|
|Perfectly Elastic Supply/Infinite Elastic Supply (Es =∞ )||Supply curve is horizontal straight line and is parallel to the x-axis|