Lawrence is a photographer.He has $230 to spend and wants to buy either a flash for his camera or a new tripod.Both the flash and tripod cost $230,so he can only buy one.This illustrates the principle that
A)trade can make everyone better off.
B)people face trade-offs.
C)rational people think at the margin.
D)people respond to incentives.

Question

Quizplus · Accepted Answer

This scenario illustrates the economic concept of trade-offs. Lawrence has to choose between buying a flash or a tripod because he only has enough money for one item. He cannot have both, so he needs to trade-off one item for the other. This highlights the reality that people have limited resources and have to make choices based on their preferences and budget constraints.

Lawrence Is a Photographer