Which of these 2 inverse supply curves is more elasticGP5010

Which of these 2 (inverse) supply curves is more elastic:G)P50+100, or (i) P -120+30,?

Solution

i)

P = 50 + 10Q_s

Q_s = 5 - 0.1P

dq_s /dp = - 0.1

ii)

P = 120 + 3Q_s

Q_s = 40 - 0.33P

dq_s /dp = -0.33

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The supply curve P = 120 + 3Q is more elastic because for every percentage change in price, the percentage change in quantity supplied is 33% in the opposite direction.