What characterizes a market with elastic supply?

A market with elastic supply is characterized by suppliers' ability to increase production rapidly without a significant increase in costs. This means that when the price of the product increases, suppliers can respond quickly by boosting output, which is a key feature of elasticity in supply. In such scenarios, suppliers have the necessary flexibility and resources, such as readily available labor and materials, to scale up their production in response to changing market conditions.

This responsiveness to price changes allows markets with elastic supply to adjust more fluidly to shifts in demand. When the supply is elastic, even small changes in price can lead to substantial changes in the quantity supplied, making it advantageous for both suppliers and consumers in a market context.