Elasticity

Elasticity of supply is determined by the availability of factors of produstion and ther costs and also their capacity and efficiency to produce. If the factors of production required to increase production cannot be readily obtained or it can be done only at increased cost of production the supply is bound tobe relatively inelastic. However, inelasticity of supply will disappear gradually in the long-run as it may be stated that in the short-run because of the difficulties to adjust the factors of production the supply is generally realively inelastic