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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Asked Oct 1, 2019
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ADVANCED ANALYSIS Currently, at a price of $1 each, 100 popsicles are sold per day in the
perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase
from $1 to $2 is unit-elastic (Es 1.0). In the long run, a price increase from $1 to $2 has an
elasticity 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 day
b. How many popsicles will be sold per day in the long run if the price rises to $2 each?
per day
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ADVANCED ANALYSIS Currently, at a price of $1 each, 100 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $1 to $2 is unit-elastic (Es 1.0). In the long run, a price increase from $1 to $2 has an elasticity 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 day b. How many popsicles will be sold per day in the long run if the price rises to $2 each? per day

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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 no
difference in determining elasticity in the table below.
Total Quantity
of
Elasticity
Coefficient
Tickets Demanded
per Week
Price
Total-
Total
Revenue
per
(Ed)
Thousands
Ticket
Revenue
Test
1
Elastic
$8
5.00
$8,000
2
7
2.60
14,000
Elastic
3
1.57
18,000
Elastic
Unit
4
5
1.00
20,000
elastic
20,000
5
4
0.64
Inelastic
3
0.38
18,000
Inelastic
6
7
2
0.20
14,000
Inelastic
1
0.00
8,000
Inelastic
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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 no difference in determining elasticity in the table below. Total Quantity of Elasticity Coefficient Tickets Demanded per Week Price Total- Total Revenue per (Ed) Thousands Ticket Revenue Test 1 Elastic $8 5.00 $8,000 2 7 2.60 14,000 Elastic 3 1.57 18,000 Elastic Unit 4 5 1.00 20,000 elastic 20,000 5 4 0.64 Inelastic 3 0.38 18,000 Inelastic 6 7 2 0.20 14,000 Inelastic 1 0.00 8,000 Inelastic

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Expert Answer

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:

Pi+P.) до
(Q*%) ДР
Ed
(1+2)
1=
(X-100)
(100+X) (2-1)
3
X-100
1=
100 X
1
100 X 3X-300
100 300 3X-X
400 2X
Х 400
2
= 200
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Pi+P.) до (Q*%) ДР Ed (1+2) 1= (X-100) (100+X) (2-1) 3 X-100 1= 100 X 1 100 X 3X-300 100 300 3X-X 400 2X Х 400 2 = 200

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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...

E
d
( 2 AP
1.5 1+2)y-100)
(100 y (2-1)
у -100
1.5
100 y
1
150 1.5y 3y-300
150+300 3y-1.5y
450 1.5y
450
у3
1.5
= 300
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E d ( 2 AP 1.5 1+2)y-100) (100 y (2-1) у -100 1.5 100 y 1 150 1.5y 3y-300 150+300 3y-1.5y 450 1.5y 450 у3 1.5 = 300

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