What characterizes an elastic supply curve?

An elastic supply curve is characterized by a situation where the percentage change in quantity supplied is greater than the percentage change in price. This indicates that suppliers are highly responsive to price changes. When the price of a good or service rises, suppliers will significantly increase the quantity they produce and offer for sale. This responsiveness is often seen in markets where production can be adjusted quickly, such as when there are readily available resources or when manufacturers can ramp up production without significant delays.

On the other hand, if the percentage change in quantity supplied is less than the percentage change in price, it reflects inelastic supply, where suppliers do not respond as significantly to price changes. When the percentage change in quantity supplied equals the percentage change in price, it indicates unitary elasticity, which is different from the concept of elastic supply. Lastly, if the supply remains unchanged despite price changes, this describes perfectly inelastic supply, where quantity supplied does not adjust at all regardless of price fluctuations. This reinforces the unique characteristic of the elastic supply curve, highlighting how it differs fundamentally from other supply responses.