What economic principle is best demonstrated by funding a new park at the expense of extending library hours?

The economic principle that is best demonstrated by funding a new park at the expense of extending library hours is opportunity cost. Opportunity cost refers to the value of the next best alternative that must be forgone when a choice is made. In this scenario, the decision to allocate funds to develop a new park means that those funds cannot be used for other purposes, such as extending the library's operating hours.

By choosing to invest in the park, the community is effectively prioritizing the benefits that come from having a new recreational space, which may include improved quality of life and increased community engagement. However, this choice also means that the potential advantages of extending library hours—perhaps increased access to educational resources and programs—are sacrificed. Thus, the concept of opportunity cost is highlighted, as it underscores the trade-offs involved in making economic decisions.