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26 Jun 2018
(Advanced Analysis) Currently, at a price of $0.5 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 $0.5 to $1 is unit-elastic (Es = 1). In the long run, a price increase from $0.5 to $1 has an elasticity of supply of 1.5. (Hint: Apply the midpoints approach to the elasticity of supply.)
How many popsicles will be sold/supplied each day in the short run if the price rises to $1 each?
per day
How many popsicles will be sold/supplied per day in the long run if the price rises to $1 each?
(Advanced Analysis) Currently, at a price of $0.5 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 $0.5 to $1 is unit-elastic (Es = 1). In the long run, a price increase from $0.5 to $1 has an elasticity of supply of 1.5. (Hint: Apply the midpoints approach to the elasticity of supply.)
How many popsicles will be sold/supplied each day in the short run if the price rises to $1 each?
per day
How many popsicles will be sold/supplied per day in the long run if the price rises to $1 each?
Collen VonLv2
28 Jun 2018
