Apply concepts suppose a friend is trying to decide whether to purchase a car. Use what you know about opportunity cost to help your friend arrived at a wise decision.

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Explanation:

Opportunity cost refers to the forfeited benefits as a result of preferring one option over others.  When deciding between several choices, one has to weigh the gains associated with each option.

When a choice is made, one foregoes the benefits from the options not preferred. The friend needs money to buy a car. Naturally, they have several options to spend that money other than buying a car. For example, they can invest in stocks, take a holiday, or buy a house. All the alternatives have their uniques benefits. If they buy a car, they forego the advantages of the other options. Opportunity cost is measured as the benefits of the next best alternative

answer///supply is elastic, and demand is inelastic;