The equation for a supply curve is 4P=Q. What is the elasticity of supply as price rises from 3 to 4?

To find the changes in quantity and eventually the elasticity, we shall use the equation given:

4Price = Quantity

If the price is $3, the quantity is

4($3) = Q

=12

If the price is $4, the quantity is

4($4) = Q

=16

Now, we can find the elasticity by using the elasticity formula:

=Percentage change in demand/ Percentage change in price

Percentage change in price = ($4 - $3)/$3 =33.33%

Percentage change in quantity = (16 - 12)/12 = 33.33%

=33.33% / 33.33%

= 1

The elasticity of supply is 1.