Question

Take a look at Figure 19-5. Following a price increase, is the quantity supplied more responsive to the price increase immediately, after an initial passage of time, and then after even more time has passed? Why is this so?

Short answer

Time turns into a significant element in deciding the elasticity of supply. So the stockpile turns out to be more versatile with the progression of time.

Step-by-step solution

Given Information

Value elasticity of demand estimates how much the demand for the item changes with one unit change in the cost of the product.

Explanation

The stockpile for the item turns out to be more responsive with the progression of time. Makers carve out an opportunity to acclimate to changes in cost. They can't promptly change their stock example right away. They get some margin to change. So at first, the inventory is inelastic and afterwards continuously it becomes inelastic with the progression of time.