Noah Values His Car at $10,000, and Emily Values It

question 40

Multiple Choice

Noah values his car at $10,000, and Emily values it at $14,000. If Emily buys it from Noah for $11,000, which of the following is true?

• A) Noah gains $1,000 of value, and Emily gains $3,000 of value.
• B) Noah gains $11,000 of value, and Emily loses $11,000 of value.
• C) Noah gains $10,000 of value, and Emily loses $14,000 of value.
• D) Noah and Emily both gain $11,000 of value.

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Definitions:

Cognitive Bias

A structured manner of diverging from the norm or logical reasoning in making judgments, allowing for conclusions about others and situations to be made in a way that lacks logical coherence.

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