Back to Assignment

Attempts

Keep the Highest $/2$

$9.$ Opportunity cost

Zach is skilled at making both necklaces and earrings. Zach has no preference between making necklaces or earrings since he earns the same amount from the two activities.

If the selling price of earrings decreases from $$40$ to $$20,$ then Zach's opportunity cost of making necklaces $\_.$ and making necklaces is now profitable than making earrings.

Suppose that the necklaces market consists of several suppliers like Zach who are skilled at making both necklaces and earrings. Which of the following is likely to happen to the supply curve of necklaces when the price of a earrings decreases?

It does not change

It shifts to the right

It shifts to the left

Continue without saving