How to apply midpoints approach to the elasticity of supply

Reference no: EM13190297

(Advanced Analysis) Currently, at a price of $1 each, 200 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). In the long run, a price increase from $1 to $2 has an elasticity of supply of 1.5. (Hint: Apply the midpoints approach to the elasticity of supply.)

Reference no: EM13190297

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