How many popsicles will be sold each day in the short run


Using the Midpoint Formula of Price Elasticity of Supply

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, if the price rises to $2 each?

 

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Business Economics: How many popsicles will be sold each day in the short run
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