A tradeoff situation is known as a choice that an individual chose by giving up something else based on that choice. Let’s understand the same with an example:
In your coming weekend, you have a choice to sit back at home and relax or go with your family for a dinner program. Of course you cannot pursue both the activities. So let’s say you consider the first option of relaxing at home. So one can say that you faced a tradeoff situation between the two choices and you chose to sit back at home where you could have gone for dinner. So basically, tradeoff choice is the scarcity of something that leads an individual to choose from either of the options.