Economics, 3rd Edition

Ease of Storing Stock/Inventory 

In some firms, stocks can be built up to enable the firm to respond 

more flexibly to changes in prices. In industries where inventory build-up is relatively easy and cheap, the 

price elasticity of supply is more elastic than in industries where it is much harder to do this. Consider the 

fresh fruit industry, for example. Storing fresh fruit is not easy because it is perishable and so the price 

elasticity of supply in this industry may be more inelastic.

Table 4.2 presents some estimates of the price elasticity of supply.

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http://www.une.edu.au/bepp/working-papers/ag-res-econ/occasional-papers/agecop3.pdf