Definition
- Availability of inputs
- Availability of inputs is how easily producers can get more of what a good is made from: readily available inputs make supply highly elastic, limited ones highly inelastic.
Example
Can you think of an example of availability of inputs?
Pizza, bread and books use inputs that are easy to buy more of, so output rises quickly. No price rise can create more flats facing a famous park.
Test yourself
Can you name the four determinants of price elasticity of supply?