The Theory Of The Firm Under Perfect Competition

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Price Elasticity Of Supply

The price elasticity of supply of a good is the percentage change in quantity supplied due to one percent change in the market price of the good.
Price space elasticity space of space the space supply space left parenthesis straight e subscript straight s right parenthesis space equals space fraction numerator Percentage space change space in space quantity space supplied over denominator Percentage space change space in space price end fraction

The Geometric Method

Geometric method is the technique of measuring price elasticity of supply at any given point on the supply curve. This method is also known as arc method or point method. Given below is a diagram of measuring price elasticity of supply from a supply curve.