Consider the following two situations.
(i)You purchase a $10 movie ticket in advance over the Internet,but when arriving at the theater,you realize that you lost the ticket.The only way to see the movie is to purchase a new ticket.
(ii)On the way to seeing a movie,you drop a $10 bill.You still can afford the movie,but you have lost the $10.
How should you,a rational person,respond to the two situations?
A)You should still see the movie in both situations.
B)You should respond the same way to each situation,whether it is to see the movie or not.
C)In the first situation,you should skip the movie;in the second,you should still see the movie.
D)In each situation,you should not see the movie.

Question

Quizplus · Accepted Answer

The rational response to both situations is the same because in each case, you are out $10. The source of the loss (a ticket or cash) doesn't change the economic impact on you.

Consider the Following Two Situations