ELASTICITY OF SUPPLY AS A DETERMINANT OF DISTRIBUTION 85 
Xo VY AX 
15 
P AX 
AP Xap 
Vo (P2+-Py) P 
In Figure 4, there are shown on a double logarithmic scale three 
supply curves of .5, 1.0, and 2.0 elasticities respectively. All 
assume constant elasticity throughout and on the logarithmic 
scale all are straight lines. 
Starting all the curves at 
a common point of inter- 
section which we may 
take as 1, the curve of 
unit elasticity bisects the 
angle at the base at 45°, 
while where the elastic- 
ities are .5 and 2.0, the 
angle is cut at 6714° and 
221%4° respectively. 
It is of course true that 
virtually all supply as 
well as demand curves are 
not characterized by uni- 
form elasticity throughout 
but exhibit varying degrees of elasticity during their course. The 
supply of a factor may for example be relatively elastic for a 
considerable period and may then take a sharper pitch and 
become relatively inelastic. To simplify the discussion of the 
relative effects of differing elasticities of supply, however, we shall 
assume in the following discussion that the given elasticities apply 
throughout the supply schedules of any one factor. What is 
found to apply to the curve as a whole will, of course, apply to 
the movement around any one point where the elasticity is the 
same. 
Re - 
One other final distinction should be made clear. The supply 
of a factor will depend not only on its elasticity but on its posi- 
tion. Figure 5 shows two supply curves each of which has unit 
elasticity, but where different quantities are supplied at the same 
price because of the fact that their coefficients are different.