advanced analysis Currently at a price of $1 each 100 popsicles are sold per day

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). So how many popsicles will be sold each day in the short run if the price
rises to $2 each? In the long run a price increase from $1 to $2 has an
elasticity of supply of 1.50. So how many popsicles will be sold per day in the
long run if the price rises to $2 each? (Hint: Apply the midpoints approach to
the elasticity of supply.)
Attachments: