Q.Explain the important factors that determine the elasticity of supply of a commodity.

How elastic or inelastic a commodity's supply turns out to be depends on several identifiable factors.

1. Nature of the commodity. Perishable goods (fresh produce) tend to have inelastic supply in the short period, since stock cannot be raised quickly; durable, storable, manufactured goods tend to have more elastic supply.
2. Time period. Supply is most inelastic in the immediate market period (stock is fixed), more elastic in the short run (some inputs can be varied), and most elastic in the long run (all inputs, including plant and machinery, can be adjusted).
3. Spare production capacity. A producer with idle capacity can raise output quickly as price rises, making supply more elastic; one already at full capacity needs fresh investment first, making supply less elastic in the short term.
4. Availability and cost of inputs. Easy, cheap availability of raw materials and labour lets output expand more readily when price rises. …

Naming only 'time period' and stopping there — a complete answer for GSHSEB Std 11 Commerce Economics exams needs several distinct factors, since such questions are typi …