Economics Elasticity Of Supply Questions
Inelastic supply refers to a situation in which the quantity supplied of a good or service does not significantly change in response to a change in price. In other words, the supply is relatively unresponsive to price changes. This occurs when the producers are unable or unwilling to adjust their production levels quickly in response to price fluctuations. Factors that contribute to inelastic supply include limited production capacity, time constraints, and the availability of inputs. Inelastic supply is typically associated with goods or services that are difficult to produce or have limited availability, such as unique artwork or specialized medical equipment.