Adjusting water heater thermostats

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My electric water heater wasn't producing hot water on Saturday morning. I checked the elements for continuity, which checked out OK. I pulled them and looked for excess scale and buildup. They looked OK, but since the price of both elements and thermostats was considerably less than a Saturday plumber service call, I went ahead and replaced both elements and both thermostats. I still don't seem to be getting enough hot water. There's an initial blast, but then the temperature drops to just lukewarm. I've tried tweaking the thermostats up, but it just seems to make the initial blast hotter, and the temperature still drops quickly.

Is there something about setting the thermostats that I'm missing? I thought they should both be at the same setting. Should one be higher than the other? Which one?

Thanks for any info on this.
 

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