Rather Than Go Out to Eat by Yourself, You Decide

question 220

Essay

Rather than go out to eat by yourself, you decide to stay at home and fix dinner for yourself and your two roommates. Your roommates applaud your decision. Your first roommate tells you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry. Is this roommate's comment correct?

---

Definitions:

Aggregate Demand

Aggregate demand represents the total demand for all goods and services in an economy at a given overall price level and in a given time period.

Market Price

The current price at which a good or service can be bought or sold in a given market.

Quantity Demanded

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

Nitrogen Oxide

Gases produced from the reaction between nitrogen and oxygen during combustion at high temperatures, often contributing to air pollution.