1. Supply Elasticity

2. Elasticity of Supply, Es = %  Qs / %  P
Is the percentage change in quantity supplied associated with a percentage change in price.
Es = %  Qs / %  P

3. Es = QS X P0
P Q0

4. Interpreting Elasticity of SupplyIf
Es > 1  elastic supply
Es < 1  inelastic supply
Es = 1  unitary elastic supply

5. If the Supply curve is a straight line:
If the supply curve cuts the
price axis (Y), then supply is
ELASTIC
Qs/ut

6. If the Supply curve is a straight line:
If the supply curve cuts the
quantity axis (X), then supply
is INELASTIC
Qs/ut

7. If the Supply curve is a straight line:
If the supply curve comes out
of the origin, then supply
is UNITARY ELASTIC
Qs/ut

8. Sections of Elasticity
Es > 1 P S
Less Elastic
More Elastic
Qs/ut

9. Sections of Elasticity
Es < 1 P S
Less Inelastic
More Inelastic
Qs/ut

10. Time and Elasiticy of Supply
The longer the time period for adjustment, the more price elastic is the supply curve.

11. The longer the time allowed for adjustment to a  Price, the more firms are able to figure out ways to increase or decrease production in an industry.

12. The longer the time allowed for adjustment to a  Price, a
The longer the time allowed for adjustment to a  Price, a greater amount of resources can flow into or out of an industry by means of expansion or contraction of existing firms.