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- 2011-5-24
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- 2012-9-12
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I understand elastisity of demand, but I'm having difficulty getting my mind around elastisity of supply.
When I think of E of demand, I think of neighboring gas stations. One raises it's price 5% and sales drop off 25% because of close substitutes.
What would be a good example of elastisity on the supply side? And, if there is elastisity of supply, does that necessarily mean that demand is inelastic?
Thank you,
- Robert |
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