People Face Trade-Off
When people have too many choices, they tend to get confused while making a decision on what to choose and what to eliminate. This phenomenon in perspective of economics is called as "Cost-Benefit Analysis".
The cost of something is what you give up to get it. This may also be called "Opportunity Cost". This means that an individual is willing to give to get something better or extra
In simple words when people have to choose between two similar choices they always choose the one, which gives them something extra or provide some extra benefit.
For Ex:
I
went to get a haircut, so I went to a salon. There were various packages ₹130 for a haircut, ₹40 for shave and second package was of ₹100 for both haircut
and shave. I chose second because I was saving ₹10 and also getting both
services for ₹150.
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