Economics Elasticity Of Supply Questions
In the short run, the factors that contribute to the elasticity of supply include the availability of inputs, the flexibility of production processes, the level of spare capacity, and the time required to adjust production levels. If inputs are readily available and can be easily obtained, the supply is more elastic. Similarly, if production processes can be adjusted quickly and efficiently, the supply becomes more elastic. Additionally, if there is spare capacity in the production facilities, the supply can be increased rapidly, making it more elastic. Lastly, the time required to adjust production levels also affects the elasticity of supply, as shorter adjustment periods allow for more elastic supply.