An Item Purchased for $150, Less 25%, Was Marked Up

question 70

Short Answer

An item purchased for $150, less 25%, was marked up by 40% of cost. The item was then reduced 30%. What was the sale price?

Recognize the impact of economic and material conditions on emotional well-being.

Understand the concept and implications of the endowment effect in economic behavior.

Recognize various cognitive biases and their impact on decision-making, including status quo bias, framing effect, and anchoring effect.

Grasp the principles of prospect theory, especially regarding how people value gains and losses.

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Definitions:

Esteem

A term that denotes respect and admiration, typically for a person or an entity's qualities or achievements.

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Extrinsic Factors

External elements or influences that affect behavior, motivation, and outcomes, such as rewards or punishments that are not inherently related to the activity being performed.

Intrinsic Factors

Elements or motivations originating from within an individual, driving behavior for the sake of personal satisfaction or fulfillment.