Concept:Opportunity cost is the value of the next best alternative forgone when a choice is made.
Explanation:The consumer has
$10 and wants to buy the pair of shoes costing
$10.
Spending all
$10 on shoes means the consumer cannot buy anything else with that money.
The affordable next best alternative costing exactly
$10 is a handbag (
$7) and jewellery (
$3) together.
The dress costs
$20, which is more than the available
$10, so it is not an affordable alternative.
The dress and jewellery would cost
$20+$3=$23, also beyond the budget.
Therefore, buying the shoes means giving up the handbag and jewellery.
Answer:C. handbag and jewellery