Question 12 • FL-2102373-Personal Finance and Money Management Honors
Read the passage.Max's first guitar holds a special place in his heart. Despite being offered a fair price for it, he refuses to sell it, claiming its unique sound and sentimental value make it priceless.Which scenario demonstrates the influence of the endowment effect on Max?
Answer
A
Max is influenced by his peers' valuation of his guitar, skewing the guitar’s worth.
B
Max asks for more than the market value due to his sentimental attachment to the guitar.
C
Max is setting a high initial selling price to give him an edge over negations during the sale.
D
Max believes the guitar's unique sound justifies a higher price, independent of market value.