Different Types of Elasticity of Supply

a) Perfectly inelastic supply: Here, the price has no influence on the quantity supplied. The supply is fixed at a given level irrespective of changes in the price (Fig.) The value of the elasticity of supply is zero.

b) Inelastic Supply: If the elasticity is less than one, the good is said to have an inelastic supply. That is, the supply of the good is relatively less responsive to changes in price (Fig).

c) Unit Elasticity: A supply elasticity equal to one refers to the situation where the percentage change in quantity supplied and percentage change in price are equal (Fig).

Fig: Unit elastic supply

d) Elastic supply: If the elasticity of supply is greater than one, then the good has an elastic supply. Here the quantity supplied is relatively more responsive to changes in price. (Fig).

Fig: Elastic supply

e) Perfectly Elastic: This is also known as infinitely elastic supply, as its value is infinite (∝). In this situation, any amount of a commodity will be supplied at the prevailing market price, but nothing will be supplied at a lower price. (Fig).

Fig: Perfectly elastic supply