Question

Denasia is planning a cruise to the Bahamas and has a budget for new evening wear of $400. The average price for a pair of shoes is $50 while the average price for an evening dress is $100. If Denasia already has 3 dresses purchased for her cruise, what is the opportunity cost of buying one more dress?

Answer 1

Answer:

The opportunity cost of buying 1 more dress is 2 pairs of shoes

Explanation:

In the graph attached to this question below, it is seen that when Denasia purchases 3 dresses, he has 4 pairs of shoes. Now if he wants to purchase 1 more dress, he has to sacrifice 2 pairs of shoes.

Thus, the opportunity cost of buying 1 more dress is 2 pairs of shoes.

Note: Kindly find an attached image of the graph as a part of the solution to the question below.