If the government imposes a tax on a product, how is the price elasticity of supply likely to be affected?

When the government imposes a tax on a product, it usually increases the cost for producers. As a result, some producers may reduce the quantity they are willing to supply at the previous price level. Price elasticity of supply measures how much the quantity supplied changes when the price changes. If the supply is elastic, producers will quickly adjust their supply to the higher costs, while if it is inelastic, they may not change their supply much. For example, if a tax is added to a popular snack, and producers can easily find alternatives or change production methods, the supply might become more elastic as they adapt to the new costs.