As a result in this decrease in your income from $300 to $240,the opportunity cost of a pair of jeans ________.
A) remains unchanged at 3 sweaters
B) falls to 2 sweaters
C) falls to 1 sweater
D) falls to $ \frac{1}{3} $sweaters

Question

As a result in this decrease in your income from $300 to $240,the opportunity cost of a pair of jeans ________.
A) remains unchanged at 3 sweaters
B) falls to 2 sweaters
C) falls to 1 sweater
D) falls to  $ \frac{1}{3} $sweaters

Quizplus · Accepted Answer

The opportunity cost of a pair of jeans in terms of sweaters remains unchanged at 3 sweaters because opportunity cost is determined by the relative prices of goods, not by changes in income.

As a Result in This Decrease in Your Income from $300