ELASTIC SUPPLY
This is when a change in price causes a more than proportionate change in supply. That is, elasticity of supply is greater than one Es > 1. Elastic supply is subdivided into two namely: perfectly elastic supply and fairly elastic supply.
INELASTIC SUPPLY
This is when a change in price causes a less than proportionate change in supply. That is, elasticity of supply is less than one. ES < 1. Inelastic supply is subdivided into two:
(a) Perfectly inelastic supply (Es = 0) and (b) Fairly inelastic supply (Es < 1).
UNITARY ELASTICITY OF SUPPLY
This occurs when the quantity supplied changes proportionately with price. ES = 1
