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PAGE 18 Chapter 4 — THE MARKET FORCES OF SUPPLY AND DEMAND
rcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc.
Harcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc.
1)Problems and Applications
1. a. A family deciding whether to buy a new car faces a tradeoff between the cost of the car and other things they might want to buy. For example, buying the car might mean they must give up going on vacation for the next two years. So the real cost of the car is the familys opportunity cost in terms of what they must give up.
b. For a member of Congress de
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