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). In the long run, a price increase from $1 to $2 has an elasticity of supply of 1.50. (Hint: Apply the midpoints approach to the elasticity of supply.) Instructions: Enter your answers as whole numbers. a. How many popsicles will be sold each day in the short run if the price rises to $2 each? per day b. How many popsicles will be sold per day in the long run if the price rises to $2 each? per day Explain why the choice between 1, 2, 3, 4, 5, 6,7, and 8 "units," or 1,000, 2,000, 3,000, 4,000, 5,000, 6,000, 7,000, and 8,000 movie tickets, makes no difference in determining elasticity in the table below. Total Quantity of Elasticity Coefficient Tickets Demanded per Week Price Total- Total Revenue per (Ed) Thousands Ticket Revenue Test 1 Elastic $8 5.00 $8,000 2 7 2.60 14,000 Elastic 3 1.57 18,000 Elastic Unit 4 5 1.00 20,000 elastic 20,000 5 4 0.64 Inelastic 3 0.38 18,000 Inelastic 6 7 2 0.20 14,000 Inelastic 1 0.00 8,000 Inelastic
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). In the long run, a price increase from $1 to $2 has an elasticity of supply of 1.50. (Hint: Apply the midpoints approach to the elasticity of supply.) Instructions: Enter your answers as whole numbers. a. How many popsicles will be sold each day in the short run if the price rises to $2 each? per day b. How many popsicles will be sold per day in the long run if the price rises to $2 each? per day Explain why the choice between 1, 2, 3, 4, 5, 6,7, and 8 "units," or 1,000, 2,000, 3,000, 4,000, 5,000, 6,000, 7,000, and 8,000 movie tickets, makes no difference in determining elasticity in the table below. Total Quantity of Elasticity Coefficient Tickets Demanded per Week Price Total- Total Revenue per (Ed) Thousands Ticket Revenue Test 1 Elastic $8 5.00 $8,000 2 7 2.60 14,000 Elastic 3 1.57 18,000 Elastic Unit 4 5 1.00 20,000 elastic 20,000 5 4 0.64 Inelastic 3 0.38 18,000 Inelastic 6 7 2 0.20 14,000 Inelastic 1 0.00 8,000 Inelastic
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![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). In the long run, a price increase from $1 to $2 has an
elasticity of supply of 1.50. (Hint: Apply the midpoints approach to the elasticity of supply.)
Instructions: Enter your answers as whole numbers.
a. How many popsicles will be sold each day in the short run if the price rises to $2 each?
per day
b. How many popsicles will be sold per day in the long run if the price rises to $2 each?
per day](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7eab4ca-2549-430b-aa9e-09c47df5b954%2Fbba01206-913a-4095-8bb9-24154dd2d8d5%2Ftecx7x.png&w=3840&q=75)
Transcribed Image Text: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). In the long run, a price increase from $1 to $2 has an
elasticity of supply of 1.50. (Hint: Apply the midpoints approach to the elasticity of supply.)
Instructions: Enter your answers as whole numbers.
a. How many popsicles will be sold each day in the short run if the price rises to $2 each?
per day
b. How many popsicles will be sold per day in the long run if the price rises to $2 each?
per day
![Explain why the choice between 1, 2, 3, 4, 5, 6,7, and 8 "units," or 1,000, 2,000, 3,000, 4,000, 5,000, 6,000, 7,000, and 8,000 movie tickets, makes no
difference in determining elasticity in the table below.
Total Quantity
of
Elasticity
Coefficient
Tickets Demanded
per Week
Price
Total-
Total
Revenue
per
(Ed)
Thousands
Ticket
Revenue
Test
1
Elastic
$8
5.00
$8,000
2
7
2.60
14,000
Elastic
3
1.57
18,000
Elastic
Unit
4
5
1.00
20,000
elastic
20,000
5
4
0.64
Inelastic
3
0.38
18,000
Inelastic
6
7
2
0.20
14,000
Inelastic
1
0.00
8,000
Inelastic](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7eab4ca-2549-430b-aa9e-09c47df5b954%2Fbba01206-913a-4095-8bb9-24154dd2d8d5%2F030txqe.png&w=3840&q=75)
Transcribed Image Text:Explain why the choice between 1, 2, 3, 4, 5, 6,7, and 8 "units," or 1,000, 2,000, 3,000, 4,000, 5,000, 6,000, 7,000, and 8,000 movie tickets, makes no
difference in determining elasticity in the table below.
Total Quantity
of
Elasticity
Coefficient
Tickets Demanded
per Week
Price
Total-
Total
Revenue
per
(Ed)
Thousands
Ticket
Revenue
Test
1
Elastic
$8
5.00
$8,000
2
7
2.60
14,000
Elastic
3
1.57
18,000
Elastic
Unit
4
5
1.00
20,000
elastic
20,000
5
4
0.64
Inelastic
3
0.38
18,000
Inelastic
6
7
2
0.20
14,000
Inelastic
1
0.00
8,000
Inelastic
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