How is elasticity of supply related to elasticity of demand? Is this correct?

I know that the terms supply and demand refer to the behavior of people as they interact with one another in markets. Buyers determine demand and sellers determine supply. Just as we can measure how responsive buyers are to a change in price, we can measure how responsive sellers are. This measurement, the price elasticity of supply, has the same formula as price elasticity of demand.

The demand curve is amount bought vs price. The supply surve is amount produced vs. price. The formulas for the two curves are NOT the same. The two curves intersect at the equilibrium price.

You are correct that both the price elasticity of supply and the price elasticity of demand are measurements of responsiveness. However, they are not exactly the same thing.

The price elasticity of demand measures how responsive buyers are to a change in price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price. A high price elasticity of demand indicates a high responsiveness of buyers to price changes, meaning that a small change in price will result in a relatively large change in quantity demanded.

On the other hand, the price elasticity of supply measures how responsive sellers are to a change in price. It is also calculated by dividing the percentage change in quantity supplied by the percentage change in price. A high price elasticity of supply indicates a high responsiveness of sellers to price changes, meaning that a small change in price will result in a relatively large change in quantity supplied.

While the formulas for calculating both elasticities are the same, they represent different aspects of the market. The elasticity of demand reflects consumers' sensitivity to price changes, while the elasticity of supply reflects producers' sensitivity to price changes.

In terms of their relationship, the elasticity of supply and the elasticity of demand can have an impact on each other. For example, in a market with inelastic supply (meaning that producers are less responsive to price changes), a large increase in demand will result in a significant increase in price, as producers have limited ability to increase their supply quickly. Conversely, in a market with elastic supply (where producers are more responsive to price changes), a large increase in demand can be met with a larger increase in supply, resulting in a smaller price increase.

So, while the price elasticity of supply and the price elasticity of demand have the same formula, they measure different aspects of market behavior and can interact with each other in determining price and quantity in a market.