unskilled and production facilities are little more than buildings—no special structures are needed. Thus, the PES for textiles is elastic. On the other hand, the PES for specific types of motor vehicles is relatively inelastic. Auto manufacture is a multi-stage process that requires specialized equipment, skilled labor, a large suppliers network and large R&D costs. Time to respond: The more time a producer has to respond to price changes the more elastic the supply. For example, a cotton farmer cannot immediately respond to an increase in the price of soybeans. Excess capacity: A producer who has unused capacity can quickly respond to price changes in his market assuming that variable factors are readily available. Inventories: A producer who has a supply of goods or available storage capacity can quickly respond to price changes. Other elasticities can be calculated for non-price determinants of supply. For example, the percentage change the amount of the good supplied caused by a one percent increase in the price of a related good is an input elasticity of supply if the related good is an input in the production process. An example would be the change in the supply of cookies caused by a one percent increase in the price of sugar. Elasticity along linear supply curves The slope of a linear supply curve is constant; the elasticity is not. If the linear supply curve intersects the price axis, PES will be infinitely elastic at the point of intersection. The coefficient of elasticity decreases as one moves "up" the curve. However, all points on the supply curve will have a coefficient of elasticity greater than one. If the linear supply curve intersects the quantity axis PES will equal zero at the point of intersection and will increase as one moves up the curve; however, all points on the curve will have a coefficient of elasticity less than 1. If the linear supply curve intersects the origin PES equals one at the point of origin and along the curve. Market structure and the supply curve There is no such thing as a monopoly supply curve. Perfect competition is the only market structure for which a supply function can be derived. In a perfectly competitive market the price is given by the marketplace from the point of view of the supplier; a manager of a competitive firm can state what quantity of goods will be supplied for any