Why is time such an important determinant in the elasticity of supply? Is time also important in determining price elasticity of demand? Explain

What will be an ideal response?

Time is an important determinant in the elasticity of supply because more resources can flow into or out of production of a good the greater the time period allowed for supply to adjust to price changes. In the short run, some inputs are fixed so firms cannot make all the adjustments they would like to make. In the long run, all adjustments can be made so quantity supplied will be more responsive to a change in price. Time is also important for determining price elasticity of demand. Again, people have more time to adjust to new situations, and more time to find substitutes for the good.