The elasticity of supply measures the responsiveness of quantity supplied to changes in price. This concept helps quantify how much producers are willing and able to adjust their output when faced with price fluctuations.

It is calculated by dividing the percentage change in the quantity supplied by the percentage change in the price.

Elastic supply indicates that the quantity supplied is highly responsive to changes in its price. In such cases, even small price changes can lead to significant adjustments in the quantity supplied.

Consider trendy movie-themed t-shirts. When their prices increase, manufacturers can quickly increase production to meet the craze, showcasing elastic supply. Similarly, items like smartphones, books, and groceries also demonstrate elasticity.

In contrast, inelastic supply indicates that the quantity supplied is less responsive to price changes.

For instance, a rise in oil prices doesn't lead to an immediate increase in supply because extracting and refining oil is a complex and time-consuming process. Likewise, vintage items, agricultural goods, specialized medicines, and some essential commodities also show inelasticity due to production constraints or limited availability.