The elasticity of supply measures the responsiveness of the quantity supplied to a

change in the price of a good. Elasticity of supply is calculated by the proportionate

change in quantity demanded over proportionate change in price.
Factors affecting elasticity of supply
Production Time Periods
In the market period, supply cannot be adjusted due to changes in price, as the
quantity supplied in the market is fixed, since inventories or stocks of unsold goods
are limit. In market period, the supply of that g/s is perfectly inelastic.
In the short run, supply is more elastic than in the market period because producers
can alter their VF such labour and raw materials to change supply, responding to a
small change in price.
In the long run, supply is highly elastic because producers can vary all factor of
production to change output level in response to a change in price.
Inventories or the ability to hold stocks
If producers are able to hold stocks of unsold good or inventories, their supply will be
more elastic. If there is a increase in price, they can quickly add more stocks to the
market.
The extent of excess capacity
Excess capacity refers to the difference between the actual and potential output of
a firm with given level of plant capacity. If a firm has excess capacity, it may be
able to respond quickly to a rise in price by increasing its production.