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 1.5. (Hint: Apply the midpoints approach to the elasticity of supply.)
Instructions: Enter only a whole number for your answer.
How many popsicles will be sold/supplied each day in the short run if the price rises to $4 each?
Instructions: Enter only a whole number for your answer.
How many popsicles will be sold/supplied per day in the long run if the price rises to $4 each?