Write short notes on 1. price elasticity of supply 2. Price elasticity of demand?

1. Price elasticity of supply: Price elasticity of supply measures how responsive the quantity supplied of a good or service is to a change in its price. If the price elasticity of supply is elastic (greater than 1), it means that the quantity supplied is highly responsive to changes in price. On the other hand, if the price elasticity of supply is inelastic (less than 1), it means that the quantity supplied is not very responsive to changes in price. Factors that can affect the price elasticity of supply include the availability of resources, production technology, and time horizon.

2. Price elasticity of demand: Price elasticity of demand measures how responsive the quantity demanded of a good or service is to a change in its price. If the price elasticity of demand is elastic (greater than 1), it means that the quantity demanded is highly responsive to changes in price. On the other hand, if the price elasticity of demand is inelastic (less than 1), it means that the quantity demanded is not very responsive to changes in price. Factors that can affect the price elasticity of demand include the availability of substitutes, necessity of the good, and time horizon.