elasticity of supply means: This is the degree to which producers are responsive to changes in price. The percent change of quantity multiplied by the price change is called elasticity. An elastic value of greater than one indicates that there is a sensitive supply-demand relationship. This can be seen in luxury goods where an increase in the price leads to an increase in supply. A supply with an elasticity value less than one is considered insensitive to price. This includes goods such as food where price increases have little or no impact on how much the producers are able to supply. (in Stock Market Dictionary)