Question on: SS1 Economics - Elasticity of Supply

What is the difference between elastic and inelastic supply?

 

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Elastic supply means that a small change in price leads to a relatively large change in quantity supplied. In other words, suppliers are very responsive to changes in price. Inelastic supply, on the other hand, means that a change in price leads to a relatively small change in the quantity supplied. In other words, suppliers are not very responsive to changes in price.

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