Key Differences Between Elastic and Inelastic Supply:

1. What They Mean:

   • Elastic Supply: This means that when prices go up or down, the amount supplied changes a lot. Think of it like a rubber band that stretches.
   • Inelastic Supply: Here, the amount supplied doesn’t change very much when prices change. It’s like a stiff rope that doesn’t bend easily.

2. Elasticity Number:

   • If it’s elastic, we say: $E_s > 1$.
   • If it’s inelastic, we say: $E_s < 1$.

3. Real-World Examples:

   • Elastic Supply: Items like smartphones and computers. Companies can quickly make more when they need to.
   • Inelastic Supply: Things like crops or fruits. These depend on how fast plants grow, so they can’t be quickly increased.

4. How Time Affects Supply:

   • In the short-term, supply is often inelastic because companies can’t change their resources right away.
   • In the long-term, supply becomes more elastic as businesses can change how much they produce.

5. What the Graphs Show:

   • An elastic supply curve looks flat, showing that a lot of supply can change with price.
   • An inelastic supply curve is steeper, showing that supply doesn’t change much when prices change.