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Dear student
P0 = Rs. 40
Q0 = 400
$$\begin{gathered} P1 = 40 - 10\%=40-4=Rs. 36 \\ Q1 = 400-36 = 364 \\ Price elasticity of supply = \frac{\%change in quantity}{\%change in price }\times \frac{P0}{Q0} \\ = \frac{(400-364)}{(40 - 36)}\times \frac{40}{400} \\ =\frac{36}{4}\times \frac{40}{400} \\ =0.9 \end{gathered}$$

No elasticity of supply is not elastic as the price elasticity of spply is less than 1. 

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