Inelastic Supply - 25

The diagram to your left indicates a good which has an inelastic supply curve. It is possible, for example, to grow tomatoes all year round. To grow tomatoes in winter requires glass houses, heating, and supplementary lighting in the right wave lengths, to compensate for the shorter days and longer nights. However, it can be done; but at a considerable cost.

The price of tomatoes would have to rise by a considerable amount (to P₁ from P_o) to justify the small increase in quantity supplied. (Q₁ less Q_o).