3. Elasticityof supply  How responsive is supply to a change in price? Will supply change a lot when prices change or a little? Can you guess what it is called when supply changes greatly with price? When supply changes a little with price?

4. Elastic supply

5. Inelastic Supply

6. Can you tell the difference? Based on the pictures, what is the difference between elastic and inelastic supply?

7.  Elasticity of supply Elastic Supply Inelastic supply big changelittle changein supply

8. Elasticity of supply  Elastic Supply  Can change supply quickly to meet the demand of the consumer  1. made quickly  2. inexpensive to make  3. using few resources – that are readily available IInelastic Supply CCan not change easily to meet the demand of the consumer 11. takes more time to produce the product 22. takes more money to produce the product 33. the resources are not as available, maybe scarce

9. Examples – elastic or inelastic?

10. YOUR TURN!  Get with a partner and add your own elastic example and inelastic example!! Be ready with your example if I call on you to share!

11. Perfectly Inelastic When you CAN NOT change supply!! Producers would like to make more available, but it is not possible. EX – seats on an airplane