Question

What is the endowment​ effect? A. Wealthier individuals place greater value on a particualr good relative to poorer individuals. B. The more you have of a​ good, the less value you place on consuming additional units of that same good. C. People place a higher value on a good if they own it than they do if they are considering buying it. D. People place a higher value on goods that they want relative to similar goods that they own.

Answer 1

Answer:

The correct answer is letter "C": People place a higher value on a good if they own it than they do if they are considering buying it.

Explanation:

The Endowment Effect reflects a situation in which people value an object more because they own it. The value they would give the object if they did not have it and were going to purchase it would be lower. This scenario takes place when people give a higher value to their objects because of emotional attachment.