Calculation of Elasticity of Demand:

The formula to calculate elasticity of demand is:

Elasticity of Demand = (% change in quantity demanded) / (% change in price)

To calculate the % change in quantity demanded, we can use the following formula:

% change in quantity demanded = (New quantity demanded - Initial quantity demanded) / Initial quantity demanded x 100%

Initially, the price is $30 per unit and the quantity demanded is 100 units. Let's assume that the price increases to $35 per unit. Using the slope of the supply curve, we can calculate the new quantity demanded as follows:

0.6 = (% change in quantity demanded) / (% change in price)

% change in quantity demanded = 0.6 x (% change in price)

% change in quantity demanded = 0.6 x (35 - 30) / 30 x 100%

% change in quantity demanded = 10%

New quantity demanded = Initial quantity demanded x (1 + % change in quantity demanded)

New quantity demanded = 100 x (1 + 10%)

New quantity demanded = 110 units

Now, we can calculate the % change in quantity demanded:

% change in quantity demanded = (110 - 100) / 100 x 100%

% change in quantity demanded = 10%

Using the formula for elasticity of demand, we can calculate the elasticity as follows:

Elasticity of Demand = (% change in quantity demanded) / (% change in price)

Elasticity of Demand = 10% / 16.67%

Elasticity of Demand = 0.6

Therefore, the elasticity of demand is 0.6.

Explanation:

The slope of the supply curve is 0.6. This means that for every 1% increase in price, the quantity supplied increases by 0.6%. Using this information, we can calculate the new quantity demanded when the price increases from $30 to $35 per unit. The new quantity demanded is 110 units, which is a 10% increase from the initial quantity demanded of 100 units.

To calculate the elasticity of demand, we use the formula (% change in quantity demanded) / (% change in price). The % change in quantity demanded is 10% and the % change in price is 16.67% (which is the percentage difference between $30 and $35). Therefore, the elasticity of demand is 0.6.

An elasticity of demand of 0.6 indicates that the commodity is inelastic. This means that a change in price will result in a proportionally smaller change in quantity demanded. In other words, consumers are not very sensitive to changes in price and will continue to purchase the commodity even if the price increases. This could be due to the fact that the commodity is a necessity or that there are no close substitutes available.