An Overview of Factors Affecting the Price Elasticity of Supply
This post will help you to further your knowledge about the factors affecting the price elasticity of supply, as part of your Prelim Economics course. There are several factors that affect the price elasticity of supply, however, the three that we look at in the preliminary course are:
- Production time periods;
- Inventories or the ability to hold stocks; and
- The extent of excess capacity.
The video below looks at some of these factors in more detail.