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definition: A measure of how suppliers will react to a change in prices.
- Will a change in price cause a large or a small change in quantity supplied? connected key terms: calculating elasticity | elastic | inelastic | unitary
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California residents have seen the price of gas rise 60 cents from three weeks ago when it was $4.13. OPEC has since raised their quantity supply from 12 billion gallons of gas to 17 billion gallons. What is the elasticity of supply, and determine whether the product is elastic, inelastic or unitary? |