Price elasticity of supply | Flipped Economics

Time: the longer the period, the more elastic. In the short run firms are stuck with their existing factories, land and trees; in the long run they can build, plant and hire.
Spare capacity: a firm with idle machines and workers can raise output quickly: elastic.
Stocks: goods that can be stored, such as tinned food, can be released when the price rises: elastic. Fresh flowers cannot.
Production time: crops that take a season, or trees that take years, make supply inelastic.
Mobility of factors: if resources can easily switch from making another good, supply is more elastic.

Olive oil: widely reported, 2023 and 2024. Diagrams drawn with Rough.js and perfect-freehand, both MIT licensed. Your answers are saved only on this device.