Explain under what conditions supply is very inelastic and elastic.

What will be an ideal response?

Elasticity of supply measures the change in quantity supplied in response to a change in price. The law of supply states that ceteris paribus, as the price of a good rises, producers will respond by producing or selling more goods because the higher price gives them an incentive to do so. The question with elasticity of supply is how much quantity supplied will go up. If supply is very inelastic, the supply curve is very steep, and quantity supplied cannot increase much in response to a higher price. For example, Texas natural gas producers cannot respond rapidly to a price increase if they do not immediately have the equipment or labor to increase production. In contrast, if supply is elastic, producers can respond quickly to a change in price. If the price of pizzas increases, a local pizza restaurant can easily produce more.