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Influences on the Price Elasticity of Supply
The two main influences are:
• Production possibilities
• Storage possibilities
1.Production Possibilities
Goods that can be produced at a constant (or very
gently rising) opportunity cost have an elastic supply.
Goods that can be produced in only a fixed quantity
have a perfectly inelastic supply.
Time Elapsed Since Price Change
As time passes after a price change, producers find it
easier to change their production plans, so supply
becomes more elastic.
2.Storage Possibilities
The supply of a storable good is highly elastic.
The cost of storage is the main influence on the
elasticity of supply of a storable good.
哪位讲解一下。。谢谢。。
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