Final answer:
The elasticity of supply differs in the short run versus the long run because of flexibility differences over time periods. Short-run supply elasticity is lower due to limited immediate adjustments to production, whereas long-run elasticity is higher due to businesses' ability to make more extensive changes such as technological advancements or capacity adjustments.
Step-by-step explanation:
The factors affecting the elasticity of supply differ between the short run and long run due to the nature of adjustments businesses can make over different time frames. In the short run, the elasticity of supply tends to be lower because there is limited flexibility to change production levels—firms can only tweak existing input levels slightly, adjusting to price changes. In contrast, in the long run, firms have more time and flexibility to adjust comprehensively, including adopting new technologies, changing production capacity, and entering or exiting markets. As such, the elasticity of supply becomes more elastic in the long run as manufacturers and service providers respond with more substantial changes to production and operational modifications to meet demand shifts.
One clear example of this can be seen in the energy market. In the short run, large changes to energy consumption are challenging, and the demand elasticity is relatively inelastic. However, in the long run, substantial changes such as purchasing more fuel-efficient vehicles or installing better home insulation can be made, making the demand much more elastic over time. These changes in consumer behavior couple with businesses' ability to adjust to market conditions, demonstrating the disparity between short- and long-run elasticity of supply and demand.