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. Time period. The single most important factor: supply is perfectly inelastic in the very short (market) period, since output cannot be raised at all in that short a time; moderately elastic in the short run, when existing capacity can be used more intensively; and most elastic in the long run, when firms can expand capacity or new firms can enter.
2. Nature of the commodity. Perishable, non-storable goods (fresh produce) tend to have inelastic supply, since sellers cannot hold back stock; durable, storable goods have more elastic supply.
3. Cost behaviour / ease of expanding output. If output can be raised without a sharp rise in marginal cost (spare capacity, easily available inputs), supply is more elastic; steeply rising marginal cost makes supply less elastic.
4. Availability of inputs/factors of production. Easy availability of raw material, labour, and capital lets output — and hence supply — expand readily when price rises.
5. Number of producers. An industry with many producers able to enter or expand quickly tends to have more elastic supply than one with a few entrenched producers. …

Naming only 'time period' and stopping there — a complete answer for MSBSHSE HSC Economics exams needs several factors, since questions of this type …