1.When the price of paper increases from $100 to $104 per ton, the quantity supplied increases from 200 to 220 tons per day. The price elasticity of supply is _________. 2. Suppose that in a month the...

1.When the price of paper increases from $100 to $104 per ton, the quantity supplied increases from 200 to 220 tons per day. The price elasticity of supply is _________.

2. Suppose that in a month the price of movie rentals increases from $2 to $2.20. At the same time, the quantity of movie rentals supplied increases from 100 to 110. The price elasticity of supply for movie rentals (calculated using the initial value formula) is _________.

3. Because the principle of diminishing returns is applicable only in the _________ (short/long) run, the _________ elasticity of supply is _________ (smaller/ larger) than the _________ elasticity of supply.

4. If the price elasticity of supply is 3.0, supply is _________ (inelastic/elastic/unitary elastic).

5. The supply curve for gasoline will be more elastic in the ______ run because firms have more time in which to respond to the price change.