Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 2, Problem 1SQP
To determine
Scarcity and
Expert Solution & Answer
Explanation of Solution
The human wants are unlimited though there are only limited resources. The scarcity of resources forces individuals to make choice based on the opportunity cost. The consumers are bound by income constraints and the limited consumption possibilities of the individuals make them to make choices based on the opportunity cost. Thus, scarcity leads to the concept of opportunity cost that influences the decisions of individuals regarding the consumption of goods and services. Suppose, there is a piece of land that can be used for cultivation, then the same land can also be used for construction of a house. If the land is used for constructing a house, then it implies that the opportunity cost involved is the price of wheat that could be earned if the land is used for cultivation.
Economics Concept Introduction
Scarcity: Scarcity refers to the limited availability of resources than the required level.
Opportunity cost: Opportunity cost refers to the given up benefits in the process of obtaining some other benefit.
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Chapter 2 Solutions
Micro Economics For Today
Ch. 2.6 - Prob. 1YTECh. 2.7 - Prob. 1GECh. 2 - Prob. 1SQPCh. 2 - Prob. 2SQPCh. 2 - Prob. 3SQPCh. 2 - Prob. 4SQPCh. 2 - Prob. 5SQPCh. 2 - Prob. 6SQPCh. 2 - Prob. 7SQPCh. 2 - Prob. 8SQP
Ch. 2 - Prob. 9SQPCh. 2 - Prob. 10SQPCh. 2 - Prob. 11SQPCh. 2 - Prob. 12SQPCh. 2 - Prob. 1SQCh. 2 - Prob. 2SQCh. 2 - Prob. 3SQCh. 2 - Prob. 4SQCh. 2 - Prob. 5SQCh. 2 - Prob. 6SQCh. 2 - Prob. 7SQCh. 2 - Prob. 8SQCh. 2 - Prob. 9SQCh. 2 - Prob. 10SQCh. 2 - Prob. 11SQCh. 2 - Prob. 12SQCh. 2 - Prob. 13SQCh. 2 - Prob. 14SQCh. 2 - Prob. 15SQCh. 2 - Prob. 16SQCh. 2 - Prob. 17SQCh. 2 - Prob. 18SQCh. 2 - Prob. 19SQCh. 2 - Prob. 20SQ
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