Bob was walking to the pizza store because he needed food. Without food, we cannot live; it is necessary for survival. Bob is going to the pizza store because food is a need and pizza is food that is something required for survival.
Your order will be ready in 10 minutes sir.
One Large Cheese Pizza Please!
Choice
But originally, I had a choice of going to watch a movie with my friend or buy pizza for myself. I had to choose an option, so I chose to go eat pizza.
Demand
You know, the demand for pizza is really high now, and many customers are filling in the store! Even if we increase the prices, our pizzas are selling hot with customers willing to pay for them!
Trade-off
The trade-off was that I could not go to the movies, and that I had to give up going to the movies by going to buy pizza instead. I decided to buy pizza rather than go to the movies.
Opportunity Cost
This is a very tough opportunity cost. I got to enjoy the delicious pizza, but I did not go to the movies, so I lost the opportunity to watch a movie with my friend and spend time with him.
The end
The End
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