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 the price elasticity of a supply of cheese is 0.80. If the price of cheese rises by 20 percent, the quantity of cheese supplied will increase by _____________percent.
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. As the supply curve becomes flatter, the price elasticity of supply _____________ (increases/decreases).