Suppose You Value a Special Watch at $100

question 413

Multiple Choice

Suppose you value a special watch at $100. You purchase it for $75. On your way home from class one day, you lose the watch. The store is still selling the same watch, but the price has risen to $85. Assume that losing the watch has not altered how you value it. What should you do?

• A)Pay the $85 to buy the watch.
• B)Wait to see if the watch goes on sale. If the price drops to $75 or less, buy the watch.
• C)Wait to see if the watch goes on sale. If the price drops to $25 or less, buy the watch.
• D)Do not buy the watch.

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