Question

2.)What is Opportunity Cost (Define and Explain) ? Give an example of an Opportunity Cost.

-3.) What is a Demand Schedule & Demand Curve (Define and Explain)? What does a Demand Schedule and Demand Curve tell (State) in economics?

Answer 1

1. Opportunity cost in simple terms can be defined as loss of one alternative in a gain of another alternative

This term is widely used in Economics as well as in our daily life

We all know that we are having a lack of resources and we have to choose the best option among the given options so that the resource utilization can be maximized and efficiency can be achieved

Here opportunity cost plays a vital role

2. Let's clear opportunity with an example - a person is preparing for the final semester examination so if a person gives up his movie plans for the preparation of the examination has the opportunity cost of not watching the movie and preparing for the exam

3. A demand schedule a market demand is a sum of all the individual demands

The demand curve is the representation of the relationship between price and quantity demanded

A demand curve is a great tool in telling the change in quantity demanded with respect to change in price which can be analyzed and used for future predictions and many more purposes