Final answer:
The elasticity of supply is determined using the Midpoint Method for Elasticity, categorizing supply as elastic if PES is greater than one and inelastic if it is less than one. Without specific data points, it is not possible to apply the midpoint method, and hence the elasticity cannot be determined.
Step-by-step explanation:
To determine whether the supply of a good is elastic or inelastic using the Midpoint Method for Elasticity, we look at the average percent change in both quantity and price. By calculating the price elasticity of supply (PES), which is the percentage change in quantity supplied divided by the percentage change in price, one can categorize the elasticity of supply into three main types: elastic, inelastic, and unitary.
An elastic supply is when the PES is greater than one, signifying a high responsiveness to price changes. Conversely, an inelastic supply is characterized by a PES less than one, which reflects a low responsiveness to price changes. It is important to mention that if the PES is exactly one, it is identified as unitary elasticity, indicating that the percentage change in quantity supplied is equal to the percentage change in price.
To apply the midpoint method, we would need two points on the supply curve—the initial and new quantity and price levels—so as to calculate the elasticity. However, the question has not provided specific numbers, so it cannot be determined from the information given. Normally, economists conduct this analysis to understand consumer behavior and to make informed decisions about pricing strategies.