What+determines+whether+the+supply+of+a+product+is+price+elastic+or+price+inelastic?

67. What determines whether the supply of a product is price elastic or price inelastic?
 - Time plays a key factor in deciding whether the supply of a product is price elastic or price inelastic. In the immediate time period, since suppliers would be unable to adapt to the change in the demand of the consumers for a particular good or service, suppliers would continue to supply the products they have previously supplied in the market and therefore, the supply at this point of time would be perfectly inelastic. In the short run, suppliers would be able to shift some of their resources into producing the good that consumers have a demand for and therefore, the supply curve would be less inelastic compared to the immediate time period because of the fact that suppliers now have a bit more time to allocate resources in the current demand for a particular good or service. In the long run period, supply would be more elastic because suppliers would have a lot of time to allocate most of their resources into producing the good or service that consumers currently have a demand for.

Therefore, the longer the time period, the more elastic the supply of the good or service and vice versa.