Behavioral economists attribute some consumer behavior to the endowment effect. Which of the following is an example of the endowment effect? An example of the endowment effect is A. being unwilling to sell a house for a price that is greater than the price you would be willing to pay to buy the house if you didn't already own it. B. taking into account nonmonetary opportunity costs such as the value of your time. C. buying lottery tickets with an expected value that is less than their price. D. being willing to will your descendents a painting upon your death that you otherwise could have sold for a substantial price. E. being unwilling to sell a vase that you already own.
Behavioral economists attribute some consumer behavior to the endowment effect. Which of the following is an example of the endowment effect? An example of the endowment effect is A. being unwilling to sell a house for a price that is greater than the price you would be willing to pay to buy the house if you didn't already own it. B. taking into account nonmonetary opportunity costs such as the value of your time. C. buying lottery tickets with an expected value that is less than their price. D. being willing to will your descendents a painting upon your death that you otherwise could have sold for a substantial price. E. being unwilling to sell a vase that you already own.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
|
Concept: Endowment Effect
|
|
Behavioral economists attribute some consumer behavior to the endowment effect.
Which of the following is an example of the endowment effect?
An example of the endowment effect is
being unwilling to sell a
house
for a price that is greater than the price you would be willing to pay to buy the
house
if you didn't already own it.taking into account nonmonetary opportunity costs such as the value of your time.
buying lottery tickets with an expected value that is less than their price.
being willing to will your descendents a
painting
upon your death that you otherwise could have sold for a substantial price.being unwilling to sell a
vase
that you already own.Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education