1) Imagine you have the choice one Sunday night between taking an extra shift at

Posted: September 21st, 2023

1) Imagine you have the choice one Sunday night between taking an extra shift at work or studying for a Monday morning exam. Describe the opportunity cost of making each decision – that is, describe the opportunity cost of working and the opportunity cost of studying (remember: opportunity cost extends beyond money). How does scarcity affect this decision?
2) Next, give an example of a decision you recently made in your own life between two outcomes. What was the opportunity cost of the decision you made? What would the opportunity cost be for the alternative decision? How did scarcity affect your choice?
3) Finally, consider supply and demand for bread. Describe what will happen to the market in the following scenarios. Discuss whether supply or demand is affected, which direction the curve will move, and the resulting change to market price and quantity (i.e., increase or decrease for each).
a) A gluten-free diet becomes popular with consumers. (Note: bread contains gluten)
b) The cost of wheat increases. (Note: wheat is an ingredient in bread)
c) What will happen to the market price and quantity if both changes (a & b) happen simultaneously?
Your response should reflect your understanding of opportunity cost, scarcity, supply and demand, and their applications. Make sure to answer all aspects of the prompt and to thoughtully respond to at least one of your peers.