Explain the concept of elastic supply.

Explain the concept of elastic supply.

Elastic supply refers to a situation in which the quantity supplied of a good or service is highly responsive to changes in price. In other words, when the price of a product increases or decreases, the quantity supplied changes significantly. This indicates that the supply is elastic and can easily adjust to changes in price. Factors that contribute to elastic supply include the availability of resources, production capacity, and the ease of substituting inputs.