The geometric method is a graphical presentation of the elasticity of the supply. This method does not involve any calculation part. Just by looking at the shape of the supply curve, we can infer about the degree of the elasticity of the supply. The degree of the price elasticity of supply depends on the slope and origin position of the supply curve. there are following five possible situations :
(a) unitary Elasticity of Supply (E, = 1): If the straight line supply curve originates from the origin, then irrespective of the angle of inclination of the supply curve, the elasticity of supply will always be equal to one i.e. (Es = 1). Such a supply curve is called unitary elastic supply curve.
(b) Less Elastic supply (Es<1): If the supply curve originates from the horizontal intercept of quantity - axis, then irrespective of the angle of inclination of the supply curve, the elasticity of the supply curve will be less than one i.e.(Es < l).
(c) More Elastic Supply (Es > 1): Unlike the less elastic supply curve, the relatively more elastic supply curve originates from the vertical intercept of price-axis. The value of elasticity of supply originating from the vertical intercept is greater than one, i.e. (Es >1).
Two Extreme cases-Perfectly Elastic supply and Perfectly Inelastic supply
(d) Perfectly Inelastic Supply/Zero Elasticity of Supply: In this particular case, the quantity supplied is totally unresponsive to the change the price of a good. In other words, no matter whatever the Price level is the quantity supplied does not change at all. In such a situation, the supply curve originates from the horizontal intercept of the quantity axis and *** vertically parallel to the price axis.ln the following figure, SS. is a perfectly inelastic supply curve which is vertically parallel to the price-axis. In this case, the value of elasticity of supply is zero, i.e.Es=0, therefore, also-known-as zero elasticity of supply or perfectly inelastic supply.
(e) perfectly Elastic Supply/Infinite Elasticity of Supply: On the contrary to the perfectly elastic supply implies a situation, where the quantity supply is fully (or highly) responsive to the change in the price of the good. In this particular case, a very small change in the price leads to an infinite change in the quantity supplied. A perfectly elastic supply curve originates from the vertical intercept of price- axis and *** horizontally parallel to the quantity axis. In the following figure, SS represents a perfectly elastic supply curve, which is horizontally parallel to the quantity-axis. The value of the elasticity of supply is infinite, i.e. Es=∞, therefore, also known as infinite elastic supply.
