Elasticity of Supply

When is a supply curve considered elastic? What are determinants of elasticity of supply? Let's compare Picasso paintings and toothpicks. Which has an elastic or inelastic supply? For which good could you increase production at a low cost? We also go over how to calculate the elasticity of supply, including using the midpoint formula.

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00:00 What is the elasticity of supply?
02:37 Four determinants of elasticity of supply
02:57 1. Change in per-unit costs with increased production
05:00 2. Time horizon
06:24 3. Share of market for inputs
08:33 4. Geographic scope
10:05 Summary
10:47 Calculating elasticity
11:49 Midpoint formula