The elasticity of supply is defined as the percentage change in quantity supplied divided by the percentage change in price. It measures the responsiveness of quantity supplied to changes in price. If the elasticity of supply equals 1, a 1% increase in price leads to a 1% increase in quantity supplied. If it is less than 1, a price increase results in a less than proportional increase in quantity supplied. The elasticity of supply depends on factors such as the nature of the good, gestation period, technology, storage and transportation capabilities.