With a Budget of $500 000,a School Board Can Choose

question 129

Multiple Choice

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination) for use in classrooms. FIGURE 1-2
-Refer to Figure 1-2.For the school board,what is the opportunity cost of one additional laptop computer?

• A)0 textbooks
• B)1/10 of a textbook
• C)10 textbooks
• D)20 textbooks
• E)2000 textbooks

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Quantity Demanded

The total amount of a good or service consumers are willing and able to purchase at a specific price level.

Complements

Goods or services that are used together, where an increase in the demand for one leads to an increase in demand for the other.