**Answer the following about 200 to 250 words each**

Explain various methods to measure Price Elasticity of Supply.

Explain various methods to measure Price Elasticity of Supply.

**ANSWER:**

The price elasticity of supply can be measured by the following two methods namely:

1. Proportionate Method

2. Geometric Method

According to this method, the price elasticity of supply is given, by the ratio of percentage change in the quantity supplied and percentage change in the price of commodity.

1. Proportionate Method

2. Geometric Method

**Proportionate or percentage method**According to this method, the price elasticity of supply is given, by the ratio of percentage change in the quantity supplied and percentage change in the price of commodity.

**Geometric method**

The geometric method is a graphical presentation of the elasticity of the supply. This method does not involve any calculation. Just by looking at the shape of the supply curve, we can infer the degree of the elasticity of the supply. The degree of the price elasticity of supply depends on the slope and origin position of the supply curve.

**There are following possible situations.**

*a. Unitary Elasticity of Supply***(**- If the straight line supply curve originates from the

*E*1 )_{s}=

*origin**,*then irrespective of the angle of inclination of the supply curve, the elasticity of supply will always be equal to one i.e.

**(**. Such a supply curve is called unitary elastic supply curve.

*E*1 )_{s}=
b.

**- If the supply curve originates from the***Less Elastic Supply*(*E*< 1)_{s }**of quantity-axis, then irrespective of the angle of inclination of the supply curve, the elasticity of the supply curve will be less than one i.e.***horizontal intercept***(**.*E*< 1)_{s }
c.

**- Unlike the less elastic supply curve, the relatively more elastic supply curve originates from the***More Elastic Supply*(*E*> 1)_{s}**of price-axis. The value of elasticity of supply originating from the vertical intercept is greater than one, i.e.***vertical intercept***(**.*E*> 1)_{s}