Two good examples of elasticity of supply
There were two good stories today on the topic of price elasticity of supply and the time lags between planning a change in supply and being able to deliver it to the market. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> EDF given green light to build gas-fired power plant Will <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" /> This article is a good example of elasticity of supply and the time frame. The new ‘EDF Energy has been given the go-ahead to build a 1,300 megawatt gas-fired power station at More here from the Guardian article: http://business.guardian.co.uk/story/0,,2202034,00.html Expanding the rail network Demand for rail continues to rise each year but the system's capacity to provide services is limited. Network Rail plans to expand capacity with extra rolling stock and station improvements - but the time lags are very long - it will take years! More available here: http://news.bbc.co.uk/1/hi/uk/7072584.stm

