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Elasticity of Supply

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Elasticity of Supply

- How responsive is supply to a change in price? Will supply change a lot when prices change or a little? Can you guess what it is called when supply changes greatly with price? When supply changes a little with price?

- Elasticity of supply
- Elastic SupplyInelastic supply
big changelittle change

in supplyin supply

- Elastic Supply
- Can change supply quickly to meet the demand of the consumer
- 1. made quickly
- 2. inexpensive to make
- 3. using few resources – that are readily available

- Inelastic Supply
- Can not change easily to meet the demand of the consumer
- 1. takes more time to produce the product
- 2. takes more money to produce the product
- 3. the resources are not as available, maybe scarce

- Get with a partner and add your own elastic example and inelastic example!! Be ready with your example if I call on you to share!

When you CAN NOT change supply!!

Producers would like to make more available, but it is not possible.

EX – seats on an airplane