Time seems the deciding point in elastic ity and in elasticity correct?
Economics - The Competitive Market System - Elasticity - Elasticity of
Elasticity of Supply
The following factors have great influence over the elasticity of supply
for a product.
* In the case of some products, it takes time to increase output quickly
in response to a change in demand and price. Agricultural products take
time to sow, grow, harvest and be sold. Their supply is inelastic. The
supply of manufactured goods like televisions can be quickly increased,
making their supply elastic.
* While the nature of agricultural goods makes supply inelastic, it is
possible to make it more elastic if the producer can store the product.
Wheat and wool, for example, can be stored for long periods of time making
it possible for producers to respond quickly to an increase in price.
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