At the competitive market equilibrium, is the price inelastic, unit elastic, or elastic

To determine whether the price elasticity of supply at the competitive market equilibrium is inelastic, unit elastic, or elastic, we need to consider the elasticity value calculated earlier:

### **Price Elasticity of Supply \( E_s = 1.5 \)**

The classifications for elasticity are as follows:

- **Inelastic Supply**: \( E_s < 1 \)
- **Unit Elastic Supply**: \( E_s = 1 \)
- **Elastic Supply**: \( E_s > 1 \)

Since the price elasticity of supply at equilibrium \( E_s = 1.5 \) is greater than 1, the supply is **elastic** at the competitive market equilibrium.

### Summary:
At the competitive market equilibrium, the supply is **elastic**.

Do you want details or have any questions?

Here are 8 related questions:

1. How would an increase in demand affect the elasticity of supply at equilibrium?
2. What factors could cause the supply to become inelastic instead of elastic?
3. Can the demand curve ever become perfectly elastic or inelastic? Under what conditions?
4. How would you interpret a perfectly elastic or perfectly inelastic supply curve?
5. How does the elasticity of supply affect the producer's ability to respond to changes in market conditions?
6. What is the relationship between time and elasticity of supply?
7. How might the elasticity of demand influence tax policy decisions?
8. How does the concept of elasticity help businesses in setting prices?

**Tip**: Elasticity measures how responsive quantity is to a change in price. Elastic supply indicates that producers can easily adjust the quantity they produce in response to price changes.

Explore the concept of price elasticity of supply at market equilibrium. Learn how to determine if supply is inelastic, unit elastic, or elastic using specific calculations and examples. Suitable for advanced undergraduate students and professionals.

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