# ADVANCED ANALYSIS Currently, at a price of \$1 each, 100 popsicles are sold per day in theperpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increasefrom \$1 to \$2 is unit-elastic (Es 1.0). In the long run, a price increase from \$1 to \$2 has anelasticity of supply of 1.50. (Hint: Apply the midpoints approach to the elasticity of supply.)Instructions: Enter your answers as whole numbers.a. How many popsicles will be sold each day in the short run if the price rises to \$2 each?per dayb. How many popsicles will be sold per day in the long run if the price rises to \$2 each?per day Explain why the choice between 1, 2, 3, 4, 5, 6,7, and 8 "units," or 1,000, 2,000, 3,000, 4,000, 5,000, 6,000, 7,000, and 8,000 movie tickets, makes nodifference in determining elasticity in the table below.Total QuantityofElasticityCoefficientTickets Demandedper WeekPriceTotal-TotalRevenueper(Ed)ThousandsTicketRevenueTest1Elastic\$85.00\$8,000272.6014,000Elastic31.5718,000ElasticUnit451.0020,000elastic20,000540.64Inelastic30.3818,000Inelastic6720.2014,000Inelastic10.008,000Inelastic

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Step 1

Hey, since there are multiple questions posted, we will answer first question. If you want any specific question to be answered then please submit that question only or specify the question number in your message.

a.

it is given that the price increases from \$1 to \$2 and the elasticity is unit elastic means that the elasticity of demand will be 1. The initial quantity demanded at price of \$1 is 100. Let consider the quantity demanded at price of \$2 be x. The value of X can be calculated using the mid-point approach as follows:

Step 2

Thus, the quantity demanded is 200 at the short run price of \$2 each.

b.

Here, the change in price from \$1 to \$2 has a elasticity of 1.5. The quant...

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