Question

74) When the price of perfume changes from $24 to $26, the quantity supplied increases from 100 jars to 150 jars. What is the elasticity of supply of perfume?
A) 25.0
B) 5.0
C) 0.04
D) 0.2
76) An 18 percent increase in the price of a small car results in a 10 percent increase in the quantity supplied. The price elasticity of supply is equal to
A) 0.75.
B) 0.40.
C) 1.80.
D) 0.55.
77) Which of the following statements is CORRECT?
A) A change in the quantity demanded means a shift in the demand curve.
B) A change in demand means a shift in the demand curve while change in the quantity demanded means a movement along the demand curve.
C) A change in demand means a movement along the demand curve.
D) A change in demand and change in quantity demanded means the same thing.
78) When Janet Yellen, Chair of the Federal Reserve, addresses Congress regarding the United States role in the world economy, she is discussing
A) incentives.
B) a mic-roeconomic topic.
C) scarcity.
D) a macroeconomic topic

Answer 1

77.

The change in the quantity demand arises when price of the goods changes and there will be change in the demand when factors other than price changes.

In case of change in the quantity demand, there will be movement along the demand curve and in case of change in the demand, there will be shift of the demand curve.

Hence it can be said that the statement “A change in demand means a shift in the demand curve while change in the quantity demanded means a movement along the demand curve” are correct.

Hence option B is the correct answer.

78.

Since macroeconomics studies the economy at a large level, it means it studies economies as whole.

Hence it can be said that When Janet Yellen, Chair of the Federal Reserve, addresses Congress regarding the United States role in the world economy, she is discussing macro-economic. This is because here she is taking about economy as a whole.

Hence option D is the correct answer.