He realized that because he couldn't do both at the same time, he had to make a . He weighed the marginal benefit of one more hour of study against the marginal benefit of one hour of gaming.
Identify that the value of the best alternative (e.g., property) has increased. hkcee 2010 econ paper 2 q2
| Price ($) | Quantity Demanded (units) | Quantity Supplied (units) | |-----------|---------------------------|---------------------------| | 2 | 120 | 40 | | 4 | 100 | 60 | | 6 | 80 (Equilibrium) | 80 (Equilibrium) | | 8 | 60 | 100 | | 10 | 40 | 120 | He realized that because he couldn't do both
However, the ceiling creates non-price rationing (queues, favoritism), which may waste resources. | Price ($) | Quantity Demanded (units) |
Leo looked at the game disc. If he chose to play, he would gain immediate enjoyment. However, the —the highest-valued option forgone—would be the peace of mind and the better grade he would have earned by finishing his assignment.