________ Refers to the Benefit Given Up by Choosing an Alternative

question 4

Multiple Choice

________ refers to the benefit given up by choosing an alternative course of action.

• A) Opportunity cost
• B) Sunk cost
• C) Relevant cost
• D) Irrelevant cost

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Definitions:

Unit Elastic

Describes a demand or supply scenario where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.

Quantity Demanded

The aggregate quantity of a product or service that customers are ready and capable of buying at a certain price point.

Price Falls

A scenario where the market price of a product or service decreases over a period of time.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price over a specific period of time.