Price elasticity of supply

Price elasticity of supply is a concept that helps explain how sensitive the quantity supplied to a change in price. Imagine a grocery store: if the store raises the price of an item, say, grapes, then the store might sell less grapes than it did before. The “elasticity of supply” measures how much the it would change in response to the price change. A higher elasticity of supply suggests that the supply of grapes would change more in response to a price change than if the elasticity of supply was lower.