ADVANCED ANALYSIS Currently, at a price of $2 each, 250 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 $2 to $4 is unit-elastic (Es-1). In the long run, a price increase from $2 to $4 has an elasticity of supply of 1.50. (Hint Apply the midpoints approach to the elasticity of supply.) Instructions: Enter your answers as a whole number. a. How many popsicles will be sold each day in the short run if the price rises to $4 each? popsicles b. How many popsicles will be sold per day in the long run if the price rises to $4 each? popsicles

ADVANCED ANALYSIS Currently, at a price of $2 each, 250 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 $2 to $4 is unit-elastic (Es-1). In the long run, a price increase from $2 to $4 has an elasticity of supply of 1.50. (Hint Apply the midpoints approach to the elasticity of supply.) Instructions: Enter your answers as a whole number. a. How many popsicles will be sold each day in the short run if the price rises to $4 each? popsicles b. How many popsicles will be sold per day in the long run if the price rises to $4 each? popsicles

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 13PAE

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