What is the meaning of price elasticity of supply? What is the meaning of scarcity?

Price elasticity of supply refers to how much the supply of a given item changes in response to an adjustment in the price of that item. For example, if more gasoline is available in the market place, the price will quickly drop. This closely relates to scarcity. Scarcity simply means that there is a natural limit on the supply of an item. This can be due to natural resource limits, or that only a certain amount of that item can be produced in a given time. The more scarce, or rare, an item is, the higher the price will tend to be when there is a demand for it.