Editing Elasticity (economics) (section)

=== Factors affecting price elasticity of supply ===

==== Availability of scarce resources in the market ====
It is one factor affecting the price elasticity of any industry if the industry uses [[scarce resources]] to produce goods. If there is an increase in demand for the goods, the company will not be able to meet the demand because of the availability of resources. Thus, it will increase the prices of the resources, leading to a corresponding increase in the price of the producer goods.<ref>{{Cite journal |last=Rustam |first=R. |date=2009 |title=Study of factors affecting demand and supply of sugar in Indonesia |url=https://www.ajol.info/index.php/jorind/article/view/50943 |journal=Journal of Research in National Development |language=en |volume=7 |issue=2 |doi=10.4314/jorind.v7i2.50943 |issn=1596-8308}}</ref> For example, Petrol is a natural resource, and thus it is scarce. If the demand for Petrol increases as there is a scarcity of Petrol, it will lead to an increase in petrol prices.

==== Number of competitors in the industry ====
It means that if the number of competitors is producing the same goods, there is an easy supply of the goods and thus supply is more inelastic with the increase in competitors.<ref>{{Cite web |last=Suman |first=Sanket |date=2015-10-16 |title=9 Factors Affecting Price Elasticity of Supply |url=https://www.economicsdiscussion.net/price-elasticity-of-supply/9-factors-affecting-price-elasticity-of-supply/12455 |access-date=2023-04-20 |website=Economics Discussion |language=en-US}}</ref>

==== Others ====
Like Price Elasticity of Demand, time also affects Price Elasticity of Supply. Though, there are other varying factors that affect this too, such as: capacity, availability of raw materials, flexibility, and the number of competitors in the market. Though, the time horizon is arguably the most influential detriment to price elasticity of supply.<ref name=":5" />

The longer the time horizon, the easier it is for commodity buyers to choose alternative products (substitutes). Further, as the time for suppliers to respond to price changes increases, a given price change will have a more significant impact on supply. However, suppliers can also hire more labour overtime, raise more funds, build more new factories to expand production capacity, and ultimately increase supply. In general, long-term supply is more elastic than short-term supply because producers need some time to adjust their ability to adapt to changes in demand.<ref>{{cite journal |first1=Leonid |last1=Galchynskyi |title=Estimation of the price elasticity of petroleum products' consumption in Ukraine |journal=Equilibrium (Toruń ) |date=2020-06-24 |volume=15 |issue=2 |pages=315–339 |doi=10.24136/eq.2020.015|doi-access=free }}</ref>