When consumers receive distributions of free rise,the quantities of rise they consume are likely to ________ and by ________ the quantity of rice received in the distribution.
A) rise; more than
B) rise; the same amount as
C) rise,less than
D) the quantities of rise they consume are not going to change

Question

Quizplus · Accepted Answer

When consumers receive distributions of free rice, they are likely to value it less than if they had paid for it, leading to a decrease in the quantity of rice they consume. This is known as the endowment effect, which suggests that people place more value on things they own (or paid for) compared to the same things they do not own. Therefore, the quantities of rice they consume are likely to decrease, and they will consume less than the quantity of rice received in the distribution.

When Consumers Receive Distributions of Free Rise,the Quantities of Rise