Which of the following scenarios best illustrates the endowment effect? Question 14 options: Sam buys a piece of art for $1,000 but refuses to sell it for anything less than $2,000. John buys a new bicycle for $500 but is willing to sell it for $300 if he needs to. Rachel gets a free concert ticket but is willing to sell it for $40 if she can't go. Susan receives a gift card for $50 but is willing to trade it for two gift cards worth $25 each.
Which of the following scenarios best illustrates the endowment effect? Question 14 options: Sam buys a piece of art for $1,000 but refuses to sell it for anything less than $2,000. John buys a new bicycle for $500 but is willing to sell it for $300 if he needs to. Rachel gets a free concert ticket but is willing to sell it for $40 if she can't go. Susan receives a gift card for $50 but is willing to trade it for two gift cards worth $25 each.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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eCONOMIC
Which of the following scenarios best illustrates the endowment effect? Question 14 options: Sam buys a piece of art for $1,000 but refuses to sell it for anything less than $2,000. John buys a new bicycle for $500 but is willing to sell it for $300 if he needs to. Rachel gets a free concert ticket but is willing to sell it for $40 if she can't go. Susan receives a gift card for $50 but is willing to trade it for two gift cards worth $25 each.
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