The table below shows the total utility associated with various units of goods X and Y.Table 7.5

-The term _____ refers to the idea that the value people place on money depends on where that money comes from.
A)decision making
B)psychological pricing
C)mental accounting
D)marketing mix
E)anchoring

Question

The table below shows the total utility associated with various units of goods X and Y.Table 7.5
 
-The term _____ refers to the idea that the value people place on money depends on where that money comes from.
A)decision making 
B)psychological pricing 
C)mental accounting 
D)marketing mix 
E)anchoring

Quizplus · Accepted Answer

The term that refers to the idea that the value people place on money depends on where that money comes from is mental accounting. Mental accounting is the tendency for people to separate their money into various accounts, such as separate budgets for entertainment, housing, and groceries. This division can lead to irrational financial decisions because the money in each account is viewed as separate, rather than as a part of a larger whole.

The Table Below Shows the Total Utility Associated with Various