Label each scenario by deciding whether the opportunity cost has increased or decreased. Emily is deciding between her two favorite restaurants. One makes Indian food and the other makes Chinese food. The Indian restaurant has just raised its prices. The opportunity cost of Chinese food has Jacob has a bagel or a muffin for breakfast. Muffins are on sale, so they cost $1 less than usual. The opportunity cost of eating a bagel has Taylor has to take time off work to study. Since her wage has increased from $10 / hour to $15 / hour, the opportunity cost of studying has Justin decides to take the bus to school instead of driving to school. The price of gasoline has just decreased. The opportunity cost of taking the bus has

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Business

Amiyah Yates

20 July, 05:59

Label each scenario by deciding whether the opportunity cost has increased or decreased. Emily is deciding between her two favorite restaurants. One makes Indian food and the other makes Chinese food. The Indian restaurant has just raised its prices. The opportunity cost of Chinese food has Jacob has a bagel or a muffin for breakfast. Muffins are on sale, so they cost $1 less than usual. The opportunity cost of eating a bagel has Taylor has to take time off work to study. Since her wage has increased from $10 / hour to $15 / hour, the opportunity cost of studying has Justin decides to take the bus to school instead of driving to school. The price of gasoline has just decreased. The opportunity cost of taking the bus has

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Annabelle · Answer 1

(1) Decreased. Because the prices of Indian food has just rise, so the opportunity cost of Chinese food will fall.

(2) Increased. Because the price of muffins has decreased, so the opportunity cost of eating bagel will increase.

(3) Increased. Because his wage rate increases, so now he have to foregone more money income as compared to earlier. So, the opportunity cost of studying has increased.

(4) Increased. This lower price of gasoline makes the bus ride cheaper.