Why is price elasticity of supply usually positive?

1 Answer
Nallasivam V
Sep 3, 2015

Price Elasticity of Supply is positive because Supply is positively related to its Price.

Explanation:

When Price rises, supply expands. With a fall in price, supply contracts. The supply curve is a positively sloping.

Supply elasticity is = #(DeltaQ)/(DeltaP) xx P / Q#

#(DeltaQ)/(DeltaP) # is always positive

# P / Q# is also positive.

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