Why can the supply of oil sometimes be inelastic?

1 Answer
Feb 24, 2016

Answer:

The supply of oil can sometimes be inelastic simply because it will be hard for oil companies or producers to increase the production or the harvest of oil due to inadequate resources.

Explanation:

It may be because they lack the capability to add more equipment to harvest the oil, or the manpower, or perhaps they can't find the natural resources to harvest oil from.

Also, they may be subject to the controlled harvesting or the regulation in harvesting of oil.