Supply with Constant Price Elasticity


This diagram shows a supply curve with a constant elasticity of {{ model.elasticity | number:2}}, passing through point A.

Drag the price up and down to see how the quantity supplied changes,
and to see how the elasticity calculations change (and don't!) as you move along the supply curve.

What happens to the diagram when you drag point A around? When you change the elasticity using the slider?


{{error}}

elasticity

|\epsilon_{Q^D,P}| = {{ params.elasticity | number:2 }}
P = {{ params.price }}

Q^D(P) = {{ model.quantityAtPrice(params.price) | number:2 }}

\frac{d Q^D}{d P} = {{ model.inverseSlopeAtPrice(params.price) | number:2 }}

\epsilon_{Q^D,P} = \color{ {{ color('green') }} }{ \frac{dQ^D}{dP} } \times \frac{P}{\color{ {{color('supply')}} }{Q^D(P)}} || = \color{ {{ color('green') }} }{ {{ model.inverseSlopeAtPrice(params.price) | number:2 }} } \times \frac{ {{ params.price | number:0 }} }{ \color{ {{color('supply')}} }{ {{ model.quantityAtPrice(params.price) | number:2 }} } }|| = {{ model.elasticity | number: 2 }}
Copyright (c) Christopher Makler / econgraphs.org