# The Degree of Elasticity

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The factor affecting its elasticity of supply for the product or service

The definition of elasticity of supply for the product or service is measured as the ratio of proportionate change in the quantity supplied to the proportionate change in price. High elasticity indicates the supply is sensitive to changes in prices, low elasticity indicates little sensitivity to price changes, and no elasticity means no relationship with price. Also called price elasticity of supply. In the degree of elasticity of supply is included price elasticity of supply. First of all, times in the short run firms will only be able to increase input of labors to increase supply of commodities may not be able to increase the supply in response to the price change but the supply change will be little because other factors of production may not be increased in the same proportion and may limit the supply. However, in the long run a firm will increase the input of all factors of production and thus the supply becomes more price elastic. For example, in the short run planters can increase the number of labors but the production will decrease because of the scale of land are not enough slot to produce the product. However, cannot increase the size of land in the short run too and in the long run all the factor will be variable. Moreover, planters can expand the scale of the land. Secondly, availability of resources when the economy already using most of its scarce resources then firms will find it difficult to employ more and so output will not be able to rise. The supply of most of goods and services will therefore be price inelastic. For example, if the planters more than the tree cutters so the producer will increase but when the tree cutter more than the planters it will probably cause the issue of availability of resources and the producer will decrease. Meanwhile, the output will…...

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