In this scenario, where you have 200ghc and need to satisfy your needs by purchasing items of the same price, the economic concept that can be applied is the concept of “Budget Allocation” or “Budget Optimization.”
Budget allocation refers to the process of allocating limited financial resources to different needs or goods in order to maximize utility or satisfaction. It involves making decisions on how to distribute your available funds among various options.
In this case, since the items provided are of the same price, you have the opportunity to choose any item you desire without any price constraint. However, you still need to allocate your budget efficiently to satisfy your needs effectively.
To apply the concept of budget allocation, you would consider your needs and preferences, and prioritize them accordingly. You would assess the utility or satisfaction you would derive from each item and make choices based on maximizing your overall well-being or utility within the given budget constraint.
You might consider factors such as the importance or urgency of each need, the potential long-term benefits, and your personal preferences or priorities. By evaluating the potential satisfaction or utility derived from each item and allocating your budget accordingly, you can optimize your choices and maximize the overall value you obtain from your limited funds.
It’s important to note that this concept assumes that all items provide the same level of utility or satisfaction and that the allocation decision is solely based on the budget constraint. In real-world scenarios, preferences, prices, and the utility derived from different goods or services may vary, which would require additional economic concepts and considerations for decision-making.
Opportunity cost refers to the value of the next best alternative that is forgone when a choice is made. In this case, since the items provided are of the same price, you have the opportunity to choose any item you desire. However, by choosing one item, you are giving up the opportunity to choose any other item.
So, the opportunity cost in this situation would be the value of the items that you could have chosen but didn’t. It could be seen as the satisfaction or utility that you would have derived from the foregone alternative.
By considering the concept of opportunity cost, you can evaluate the options available to you and make a decision based on your preferences and the value you place on each item. It allows you to weigh the benefits and drawbacks of each choice and make the most informed decision given your limited resources.

In this scenario, where you have 200ghc (Ghana cedis) and the items provided are of the same price, the economic concept that can be applied here is “Consumer Choice” or “Utility Maximization.”
Consumer choice refers to the decision-making process that individuals go through when selecting among various goods or services to satisfy their needs and wants. It involves considering the preferences, tastes, and budget constraints of the consumer.
In this case, with a fixed budget of 200ghc and items available at the same price, you have the opportunity to choose any combination of items that adds up to 200ghc. The concept of utility maximization comes into play as you aim to maximize your satisfaction or utility from the items you choose.
To apply the concept of consumer choice and utility maximization, you would consider the utility or satisfaction you derive from each item and allocate your budget in a way that maximizes your overall well-being. You would assess the relative importance or desirability of each item based on your personal preferences and needs.
It’s important to note that utility is subjective and varies from person to person. What provides satisfaction to one individual may differ from another. Therefore, your preferences and individual utility function will determine the optimal allocation of your budget to maximize your satisfaction.
By evaluating the potential utility or satisfaction derived from each item and considering your own preferences, you can make choices that align with your needs and preferences while staying within the given budget constraint. This concept of consumer choice and utility maximization allows you to make rational decisions in allocating your limited resources to satisfy your needs effectively.