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.

---

Definitions:

Receptor

A specialized cell or group of nerve endings that responds to specific stimuli like light, heat, or chemical signals, transferring the information to nerves.

L-DOPA

A precursor to dopamine used as a medication to treat Parkinson's disease and dopamine-responsive dystonias, by increasing dopamine levels in the brain.

Parkinson's Disease

A progressive neurological disorder that affects movement, causing symptoms such as tremors, stiffness, and balance issues.

Phenylalanine

An essential amino acid required for the body's production of proteins and certain brain chemicals. It is obtained through diet.