Candice is planning her activities for a hot summer day. She would like to go to the local swimming pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the same time that the pool is open she can only choose one activity. This illustrates the basic principle thata. people respond to incentives. b. rational people think at the margin. c. people face tradeoffs. d. improvements in efficiency sometimes come at the expense of equality.

C. People Face Trade offs.

Explanation:

As Candice is planning her activities for a hot summer day. She would like to go to the local swimming pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the same time that the pool is open she can only choose one activity. This illustrates the basic principle that people face trade offs. Trade off can be best defined as the exchange when one person gives up one thing or activity in order to get another thing or activity which he or she also likes and desires where both things can not be attained at the same time, getting one thing will be resulted in leaving another thing.

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