3rd+Exam+-+Sally+B.

media type="custom" key="6234797" Intro: media type="custom" key="6220301"

Here It Goes (might take some time to buffer -- sorry!) media type="custom" key="6233965" width="80" height="80" Keypoints: involved in the process of importing the product called, Chia Seed. It is a health product made from natural food (it's not a medication) that contains a lot of omega-3 to help the blood circulation. It's also great for diets :) The opportunity costs of importing by themselves are time and resources that could be used to develop new products or research for more ideas that would improve the business of KSquareS Inc.. The opportunity costs of hiring the "middleman" are the extra dollars that could be spent to manufacture other goods. Although those extra dollars seem to have more value than the time and the resources, in long-term, the latter ones are more valuable, and the former choice incurs additional costs such as burden for the company and making a mistake in the process, which is risky. Furthermore, since other diet products are way more expensive than the Chia Seed, increasing the price of the good (due to a rise in the cost when imported through the "middleman") doesn't have any negative impact to the company. Therefore, even though it costs more for KSquareS Inc. to import Chia Seed through the "middleman," this decision is preferable because it has lower opportunity cost than that of the other one. Thus, Mrs. Kim chose to use the middle company.
 * Purpose:** to relate opportunity cost to real life and two other economic concepts
 * Explanation:** the employee #1 (from intro. clip) went to interview the CEO of KSquareS Inc. (Sunny Kim) to ask what kind of decisions were
 * 1. What is Chia Seed?**
 * 2. Two Choices:** import Chia Seed by themselves (KSquareS Inc.) __OR__ use the "middleman"
 * 3. Pros & Cons**
 * 4. Making the Decision**
 * 5. Conclusion**

RELATING TO 2 OTHER ECONOMIC CONCEPTS 1. Elasticity Since Chia Seed was a new product in Korean market, the customers couldn't compare its price with different diet products at first. Moreover, despite its high cost, which led to an increase in price of the good, Chia Seed was still cheaper than most of the diet products. Hence, even when the price went up to $10 a kilo, consumers weren't greatly affected and continued to buy it. Because the change in price was greater than the change in quantity demanded, the elasticity of the Chia Seed is INELASTIC ( % ∆Q / % ∆P < 1). elastic demand curve.  2. Substitute Goods As Chia Seed is also one of the diet products, it can be a substitute for them. For example, another Korean diet product is Xenical. So if the price of Xenical increases, consumers will buy cheaper diet good and thus the demand for the Chia Seed will increase. The graph below is the market of Chia Seed (after the price of Xenical increases): CONCLUSION From this brief lesson about opportunity cost, we can conclude that every single good we consume involves decision process that deals with comparing the opportunity cost. It is also important to recognize that the concept of opportunity cost can relate to other economic ideas such as elasticity and substi- tute goods.
 * Inelastic graph:** [[image:Inelastic_Demand.png]]the inelastic demand curve is steeper (because there is more change in the price of the good) than the