(i) Nature of commodity:
Perishable and agricultural goods-inelastic
Durable goods – elastic
(ii) Cost of production :
If the production is subject to diminishing costs supply will be more elastic.
In case of increasing costs, supply will be less elastic.
(iii) Time period :
During short period, supply will be less elastic.
In long period, supply is more elastic.
(iv) Technique of production :
Goods using simple technique of production – elastic supply.
In case of complex goods, less elastic
(v) Risk bearing capacity:
The goods will have elastic supply if risk bearing capacity of the firms is large.
If producers are unable to bear risk, they will produce less elastic goods.
