An intervening opportunity is an example of a __________.

• A. factor that affects the flow of goods and people
• B. market equilibrium
• C. law of demand
• D. production possibility frontier

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of an intervening opportunity. In microeconomics, an intervening opportunity refers to a factor that influences the movement or flow of goods, services, or people by providing an alternative option that may be closer or more convenient.
2. Step 2: Review the given answer choices: 'factor that affects the flow of goods and people', 'market equilibrium', 'law of demand', and 'production possibility frontier'.
3. Step 3: Recall definitions: Market equilibrium is where supply equals demand; the law of demand states that quantity demanded decreases as price increases; the production possibility frontier shows trade-offs in production capacity.
4. Step 4: Compare the concept of intervening opportunity with these definitions. Since it relates to alternatives affecting movement or flow, it aligns best with 'factor that affects the flow of goods and people'.
5. Step 5: Conclude that an intervening opportunity is an example of a factor that affects the flow of goods and people, as it provides alternative options influencing economic decisions and movements.