Currently, at a price of $0.50 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 $0.50 to $1 is unit-elastic (Es = 1). In the long run, a price increase from $0.50 to $1 has an elasticity of supply of 1.50. (Hint: Apply the midpoints approach to the elasticity of supply.)a. How many popsicles will be sold each day in the short run if the price rises to $1 each?
b. So how many popsicles will be sold per day in the long run if the price rises to $1 each?