Elasticity of Supply Responsiveness of producers to a change in the price of their goods or services Elasticity of supply is measured as the ratio of proportionate change in the quantity supplied to the proportionate change in price. High elasticity indicates the supply is sensitive to changes in prices, low elasticity indicates little sensitivity to price changes, and no elasticity means no relationship with price.

Tends to have inelastic supply: expensive long time to make difficult to produce

Tends to have elastic supply: Cheap Quick to produce Easy to produce