A consumer with $10 needs a dress, a pair of shoes, a handbag and jewellery costing $20, $10, $7 and $3 respectively. The
opportunity cost of buying the pair of shoes is the
Opportunity cost in economics refers to the value of the next best alternative that must be given up to obtain something else. If
the consumer chooses to buy the pair of shoes costing $10, they will be left with no money, thus giving up the opportunity to buy
the handbag and jewellery which together cost $10. The other options are not correct because the dress costs $20 which is more
than the consumer's budget, and the dress and jewellery together also cost more than the consumer's budget.
Contributions ({{ comment_count }})
Please wait...
Modal title
Report
Block User
{{ feedback_modal_data.title }}