is elasticity of demand different from elasticity of suppy?

Answer 1

Yes, they are different.

Elasticity of demand is the change in quantity demanded associated with a change in price. This is the slope of the demand curve. This slope is always negative. The lower the price, the higher the demand and vice versa.

Elasticity of supply is the change in quantity supplied associated with a change in price. This is the slope of the supply curve. This slope is always positive. The higher the price, the higher the supply and vice versa.

Let's take a simple example. Movie tickets increase by $1. As a result movie attendance decreases by 10%. The elasticity of demand would be -0.10%. For every $ increase in price, quantity demand drops by 10%. However, given the same increase in price there is a 20% increase in movie showings. For every $ increase in price, quantity supplied increases by 20%.

For any business venture, you have to price your product and services with a good understanding of the elasticity of demand. Depending on such elasticity, it does not make sense to increase price beyond the point where your revenues and income break even with where they were in your original price structure.

Elasticity of supply deals more with the operation structure of the industry you operate in and external competition.

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Answer 2

of course.

example: demand for corn syrup during July. May vary depending on consumer preferences, candy companies ramping up for Halloween candy, etc.

supply, however, is defined way in advance by the relative prices of corn vs alternatives.

this is oversimplifying of course, but you can see that demand and supply have unique independent inputs.

Answer 3

demand and supply are two different things, so their elasticities are two different numbers.

Answer 4

don't think so. they go hand in hand. they relate.