How does opportunity cost affect people's wants and needs?
(1 point)
Responses
It changes the supply and demand of goods.
It changes the supply and demand of goods.
It requires them to make a choice.
It requires them to make a choice.
It requires them to be producers and consumers.
It requires them to be producers and consumers.
Opportunity cost does not impact wants and needs.
It requires them to make a choice.
When supply decreases and demand increases, what happens to the price of a good?
(1 point)
Responses
it increases
it increases
it stays the same
it stays the same
it decreases
it decreases
it is unaffected
Opportunity cost requires people to make a choice. When individuals have limited resources, they must prioritize and decide which wants and needs to fulfill. By choosing one option, they must forgo the benefits or opportunities that could have been gained from choosing an alternative option. Therefore, opportunity cost directly affects people's wants and needs by necessitating them to make choices and consider the trade-offs involved in the decision-making process.
The correct answer is: It requires them to make a choice.
Opportunity cost refers to the value of the next best alternative that is forgone when making a decision. When people have wants and needs, they often have limited resources or time to fulfill all of them. As a result, they have to make choices and prioritize what is most important to them. In doing so, they consider the opportunity cost of choosing one option over another. For example, if someone wants to buy a new car but also needs to save money for a house down payment, they must decide which one is more important to them and forego the other option. The opportunity cost in this situation is the value of the forgone option (either the car or the house down payment) and it affects their decision-making process. Therefore, opportunity cost requires people to make a choice when it comes to fulfilling their wants and needs.