Suppose Adam Einberg Pays $100 for a Ticket to a New

question 13

Multiple Choice

Suppose Adam Einberg pays $100 for a ticket to a new Broadway play and $100 was the maximum price he was willing to pay.On the day of the performance of the play Adam refuses to sell the ticket for $150.How would behavioral economists explain Adam's refusal to sell his ticket?

• A)Adam's tastes had changed from the time he bought the ticket to the time of the performance of the play.
• B)When Adam bought the ticket he was being unrealistic about his future behavior.
• C)The endowment effect explains Adam's actions. People like Adam seem to value things that they have more than the things they do not have.
• D)Adam's income probably increased between the time he bought the ticket and the day of the play's performance.

Recognize conditions under which specific performance or substantial performance applies in contract law.

Comprehend the principles guiding remedies for breach of contract, such as damages and injunctions.

Identify anticipatory breach and its implications in contracts.

Grasp the concept of material breach and its consequences on contract obligations.

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Definitions:

Sports Tickets

Printed or electronic vouchers that grant the holder admission to a sporting event.

Budget Line

A visual depiction showing all the different pairs of two products that can be bought given certain prices and a specific amount of income.

Music Downloads

Digital files of songs or albums that can be legally transferred from an Internet site to a user's computer or portable music player.

Streamed Movies

Films that are delivered and viewed over the internet rather than through traditional physical media or broadcast.