Editing Elasticity (economics) (section)

=== Price elasticity of supply ===
{{main|Price elasticity of supply}}
[[File:Price elasticity of supply.PNG|thumb|Calculating the price elasticity of supply]]
The [[price elasticity of supply]] measures how the amount of a good that a supplier wishes to supply changes in response to a change in price.<ref name="Perloff, J. 2008. p.36">Perloff, J. (2008). p.36.</ref> In a manner analogous to the price elasticity of demand, it captures the extent of horizontal movement along the [[supply curve]] relative to the extent of vertical movement. If supply elasticity is zero, the supply of a good supplied is "totally inelastic", and the quantity supplied is fixed. It is calculated by dividing the percentage change in quantity supplied by the percentage change in price.<ref name=":5">{{Cite book|last1=Gans|first1=Joshua|title=Principles Of Microeconomics|last2=King|first2=Stephen|last3=Mankiw|first3=Gregory, N.|publisher=Cengage Learning|year=2017|isbn=978-0-17-028246-8|location=South Melbourne, Victoria|pages=108–116}}</ref>

The supply is said to be inelastic when the change in the prices leads to small changes in the quantity of supply. Whereas the elastic supply means the changes in prices causes higher changes in the quantity supplied.