Chapter 1, Problem 14AA

To determine

To analyze: the requirement in a trade off.

Explanation of Solution

A trade-off is a circumstance where someone makes a negotiation between two things, or where one or even all of one thing is retrieved for the other.

So, a trade off requires a person to give up on one item for getting something else. It is a basic phenomenon in economics as the resources are scarce and wants are unlimited. So, people need to choose what is more important for them to buy.

For instance, a person has income of $100. He can either buy $100 of medicines for his mother, who is ill. Or he can buy $100 of fruits for his family. So, the person has to trade off between the two options.