Use the following to answer question:
Figure 18.1
-(Figure 18.1) Suppose that people selling their homes fall prey to the sunk cost fallacy, refusing to sell at the going market price to avoid a nominal loss during an economic downturn. What price might these homeowners try to sell their homes for?
A) $120,000
B) $150,000
C) $100,000
D) any price less than $120,000

Question

Use the following to answer question:
Figure 18.1 
-(Figure 18.1) Suppose that people selling their homes fall prey to the sunk cost fallacy, refusing to sell at the going market price to avoid a nominal loss during an economic downturn. What price might these homeowners try to sell their homes for?
A) $120,000 
B) $150,000 
C) $100,000 
D) any price less than $120,000

Quizplus · Accepted Answer

Homeowners might try to sell their homes for $150,000, which could be the original purchase price or a price that avoids a nominal loss, reflecting the sunk cost fallacy.

Use the Following to Answer Question