Elasticity of Supply

The following factors have great influence over the elasticity of supply for a product.

• Time. 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.
• Ability to store the product. 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.