MEASURE OF ELASTICITY AND ITS DETERMINATS FOR SUPPLY

Elasticity-It is a measure of the sensitivity of one variable to another. In other words it is the measure of degree of respose.
To understand better we can draw a simple example: Suppose I increase the advertising of a fastrack neon watch by 25% then what ercentage increase in sales I can expect for that fastrack neon watch. This response of the product to that advertisement is measured as elasticity.

Determinants of elasticity for supply:
1. Flexibility of inputs: Here we will consider the things or inputs which are ireplaceble.
Take an example of Columbia Asia. We all know that its a reputed hospital. But how a hospital gets its reputation? By the performance of its DOCTORS. So if the main doctors pf Columbia Asia is removed then it will tend to loose its reputation as well. The nurses or the other stuffs are replaceble but here the the doctors are not flexible.
2. Mobility of inputs: If both capital and labour are occupationally mobile then the elasticity of supply for a product is higher than if capital and labour cannot easily be switched. 
Take an example of a theatre group. The people working in a theatre group have the option to switch. If someday the theatre business fails they can move into movies,serials, advertisements etc. But if you are doing a business which involves lots of huge machinaries, it is not easy for you to move all those to some other place and start a new business.
3. Time: Here we are talking about that particular moment of time that cannot be replaced and it becomes inelastic input.
Supply is more price elastic the longer the time period that a firm is allowed to adjust its production levels. In some agricultural markets the momentary supply is fixed and is determined mainly by planting decisions made months before, and also climatic conditions, which affect the production yield. In contrast the supply of milk is price elastic because of a short time span from cows producing milk and products reaching the market place. [Ref: www.tutor2u.net ]
4. Availabity to produce substitues:
The more availability of substitute goods the supply will become more elastic.
Take a example of a Maruti suzuki and Hyundai. Suppose Maruti increased the price of Baleno. Then people will tend to go for i20 because i20 almost gives the same features as Baleno. People are getting substitutes here. The more people moving to i20 its afecting the sales of Maruti.