respond to this discussion COLLAPSE Elasticity of supply uses the same formula as elasticity of demand except it uses the data from the supply curve. If the elasticity of supply is greater than 1 it is elastic. For example if the elasticity of supply is 3.45 that means for every 1% in price change supply changes by 3.45, whether it is up or down. If the elasticity of supply is less than one it is inelastic. For example if elasitcity of supply is .2 then for every 1% change in price the supply will go up or down by .2