Suppose That You Value a Hat from Your Favorite University

question 199

Multiple Choice

Suppose that you value a hat from your favorite university at $20. The university bookstore has the hat on sale for $15. You purchase the hat but lose it on the way home. What should you do? Assume that losing the hat does not alter how you value it.

• A)Go back to the bookstore and purchase another hat.
• B)Wait until the cost of the hat falls to $15 or less before purchasing another hat.
• C)Wait until the cost of the hat falls to $5 or less before purchasing another hat.
• D)Do not purchase another hat regardless of the price.