Joe runs a landscape company and uses one of his

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362 Joe runs a landscape company and uses one of his home's bedrooms as a home office. This office could be used to earn rental income from college students. If average rental income in
Joe's neighborhood were to rise:
Joe's opportunity cost of using a bedroom as a home office would increase. (
A change in price is reflected by a movement along the same demand curve while a change in demand refers to a shift of the entire demand curve.
)
If the price of ski lift tickets increases, the demand for ski lift tickets will decrease. True False (True Answer 365
)
Consumer surplus can be defined as the net benefit to consumers from participating in a market.
)
The demand curve for an inferior good reacts inversely to changes in income, while the demand curve for a normal good has a positive relationship with changes in income.
)
An increase in income increases the demand for normal goods.
)
When the price of oil used for generating electricity increases, the demand for nuclear power will increase. True (True Answer False
)
369 If the price to play golf decreases, the demand for golf balls will increase.
)
Advertising, fads, and fashion are examples of influences on demand that are generally referred to as altering expectations about products.
)
A change in quantity supplied is reflected by a movement along the same supply curve while a change in supply refers to a shift in the entire supply curve.
)
Suppose that the market price for MP3 players is $90 and MP3 players can be produced by firm X for $40 each. Producer surplus for this firm is $50 per MP3 player. True (True Answer False 373
)
Producer surplus can be defined as the revenue producers make from selling goods in a market.
)
Advances in technology such as personal computers and cellular telecommunications are indicated in the supply graph by a movement along the supply curve.
)

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