Currently, at a price of $2 each, 250 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 $2 to $4 is unit-elastic (Es = 1). In the long run, a price increase from $2 to $4 has an elasticity of supply of 1.50.Currently, at a price of $2 each, 250 popsicles are sold per day in the perpetually hot town ofRostin. Consider the elasticity of supply. In the short run, a price increase from $2 to $4 is…
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