Question

Mila is at a flea market. She has $50 in her wallet. She decides that she will spend $15 on jewelry, $20 on a pair of jeans, $5 on a T-shirt, and $10 on something to eat. She likes a one-of-a-kind T-shirt, but the seller is not ready to sell it for less than $8. She thinks of five ways to deal with this situation. Which two choices indicate a trade-off?
She will try to find another seller selling the T-shirt for a lower price.
She will give up on the T-shirt and use the money to buy better jeans.
She will use some of the money she received from her aunt on her birthday.
She will pay the seller $5 and promise to pay the remainder on another day.
She will buy the T-shirt for $8 and not order juice at lunch.

Answer 1

She likes a one-of-a-kind T-shirt, but the seller is not ready to sell it for less than $8. She thinks of five ways to deal with this situation. The two choices that indicate a trade-off: "She will try to find another seller selling the T-shirt for a lower price." "She will use some of the money she received from her aunt on her birthday."

Answer 2

Answer: She will give up on the T-shirt and use the money to buy better jeans.

She will buy the T-shirt for $8 and not order juice at lunch.

Explanation:

A trade-off refers to the compromise which is made when an individual decides to take one action and give up on the other.

When Mila buy's the T-shirt for $8 and does not order juice at lunch, she is making a trade-off between buying a t-shirt and ordering a juice at lunch.

Similarly, when Mila decides to give-up on the T-shirt and decides to buy a better jeans she is making a trade-off between