Question

John is an athlete. He has $120 to spend and wants to buy either a heart rate monitor or new running shoes. Both the heart rate monitor and running shoes cost $120, so he can only buy one. This illustrates the principle that a. rational people think at the margin. b. trade can make everyone better off. c. people respond to incentives. d. people face trade-offs.

Answer 1

D. People face trade-offs

Step-by-step explanation: