Elasticity: A Measure of Response
Read this chapter to learn about the concept of elasticity. Be sure to read Sections 5.1-5.4 following the introduction.
Price Elasticity of Supply
Answer To Try It Problem
While at a point in time the supply of people with degrees in computer science is very price inelastic, over time the elasticity should rise. That more students were majoring in computer science lends credence to this prediction. As supply becomes more price elastic, salaries in this field should rise more slowly.