Please help me solving this sum

Raj · 9 May 2024

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

Anas · 9 May 2024

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. Hence, correct answer is option D.

Harsh · 9 May 2024

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