This is REV4.0
Check our Blog page and Social Media Platforms to learn about this new fun Update!
Let's say you are at your school cafeteria, you have a total of 10 dollars to spend.
The following options are open to you:
- A Water for 10 dollars.
- A sandwich for 10 dollars.
How can you explain Scarcity, Choice and Opportunity Cost from the above scenario?
"Scarcity" is present through the fact that you do not have enough money to purchase both products nor is there more resources to satisfy your need/want.
"Choice" is obvious in the fact that you have to choose which you want to buy and which to go without.
Lastly, "Opportunity Cost" is present as whichever one you choose, there is an alternative foregone. For instance, if you chose the sandwich, your opportunity cost will be the water and vice versa if the water was chosen.
Jun 18 2025 - 12:46 AM
