Assume That You Had a Ticket for a Basketball Playoff

question 94

Multiple Choice

Assume that you had a ticket for a basketball playoff game that you bought for $50, the maximum price you were willing to pay.If a friend of yours offers to buy the ticket for $100 but you decide not to sell it, how can your decision be explained?

• A)You expect to receive greater utility from attending the playoff game than you received from buying the ticket.
• B)by the endowment effect
• C)by the law of diminishing marginal utility
• D)The income effect from the increase in the price of the ticket from $50 to $100 was greater than the substitution effect.

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Definitions:

Controlled Substances Act

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An educational institution that provides training and education for students to become physicians or other health professionals.

Scientific Medicine

An approach to medicine that is based on the scientific method and evidence-based practices.

Claudius Galen

An ancient Roman physician and philosopher whose work and theories formed the basis of European medicine for centuries.