Demand and supply

Question

supply function is Q= -100+10P . Where price = 15 . find elasticity by point method .

Answer 1

Given supply function is given as: Q = -100 + 10P 

=> P = (Q + 100)/10 = Q/10 + 100/10 = Q/10 + 10. 

Slope of supply = 1/10. When price (P) = 15, Q = -100 + 10(15) = -100 + 150 = 50.

Elasticity of supply = (1/Slope of supply) x P/Q = {1/(1/10)} x 15/50 = 10 x 15/50 = 150/50 = 3.