Fisheries Economics

2.3.6.5. Relatively Inelastic Supply (S₅S₅)

When the proportionate change in quantity is less than the proportionate change in price the supply is relatively inelastic. Any straight line that cuts the horizontal axis has an elasticity less than one.

Generally elasticity of supply can vary from one price range to another. At a low price and for small quantities, supply is perfectly elastic. But as quantity continues to increase, supply becomes less and elastic. At higher supply prices, supply is perfectly inelastic.