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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 prices rises to $2 each?In the long run a price increase $1 to $2 has an elasticity of supply of 1.50. So how many popsicles will be sold in the long run if the price rises to $2 each?(Hint Apply the midpoints approach to the elasticity of supply.)I came up with 200 posicles in the short run and 150 in the long run. I'm pretty certain about the short run but not so much on the long run.
I also have to graph this in excel.
Here is the answer.word file
Thanks for working to answer my question.
What formula would I use to graph these myself in excel? I see the graph in word, which is great, but I need to be able to do that in excel and turn in an excel document.