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When is supply considered price elastic, or price inelastic?

elastic inelastic price supply
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When is supply considered price elastic, or price inelastic?

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The price elasticity of supply measures the responsiveness of suppliers or producers to a change in the price of a good or service. Elasticity of supply is measured by: Percentage change in quantity supplied Percentage change in price Supply is considered elastic when the elasticity coefficient is greater than 1.0. The increase in the market price of golf balls is 10 percent. The golf ball industry increases its production by 20 percent. The elasticity of supply would be 2.0 (20% over 10% = 2.0). Supply is considered inelastic when the elasticity coefficient is less than 1.0, and greater than 0. Producers are unresponsive to a change in price. The price of cheese in Perth, Ontario, increases by 20 percent. The region’s producers respond slowly by increasing their production by 5 percent. The supply of cheese is considered, in this situation, to be inelastic (5% over 20% = 0.25). Producers are slow to respond to the challenge of the increase in price because it takes time for management

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