What formula is used to measure the elasticity of supply?

The formula for measuring the elasticity of supply focuses on how responsive the quantity supplied of a good is to changes in its price. The correct formula represents this relationship as the percentage change in quantity supplied divided by the percentage change in price.

This means that when the price of a good increases or decreases, we look at how much the quantity supplied changes in response to that price shift. If the quantity supplied changes significantly with a price change, the supply is considered elastic; if it changes very little, it is inelastic.

The other options do not accurately capture this relationship. For example, one option pairs quantity supplied with demand changes, which is not relevant for calculating the elasticity of supply. Another option flips the relationship between changes in quantity supplied and price, which would lead to a misrepresentation of how supply elasticity is typically calculated. Understanding the correct formula is fundamental for analyzing how suppliers react to price fluctuations in a market.