The production volume, accordingly, increased from 1,000 to 1,500 units

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4) Absolutely inelastic supply - no matter how the price changes, the supply will always be at the same level. Classic example: antiques, works of art - their quantity is always fixed.

5) Unit elasticity of supply. When a 1% increase or decrease in price is accompanied by a 1% decrease or increase in supply.

Now let's look at an example. Let's imagine that a company produces T-shirts. The south africa phone number list price of a T-shirt in 2023 was 500 rubles. In 2024 - 600 rubles.
The elasticity of supply can be calculated as follows: Es = ΔQ/ΔP
First, we find the change in output volume, and then the price:

ΔQ=(1500-1000)/1000*100%=50% — the supply volume increased by 50%.
ΔP=(600-500)/500*100%=20% — price increase.
Then the elasticity is: Es​=50/20=2.5.
The elasticity of supply is 2.5. 2.5>1, which means supply is elastic. In response to rising market prices for products, the firm can quickly adapt and increase supply. This result is typical for products whose production can be quickly scaled.

What is the elasticity of demand or supply for?
Elasticity of demand and supply are two key indicators that help businesses analyze the market situation and make informed decisions about increasing or decreasing production volumes, and therefore revenue and profits. Let's look at some examples.

1) Let's start with the concept of price elasticity of demand. It helps manufacturers predict how consumers will react to price changes. For example, if a company knows that a product has elastic demand, then even a small price reduction can lead to a significant increase in sales, which will be beneficial for the business.