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George Was Examining a Sweater at a Department Store

Question 53

Multiple Choice

George was examining a sweater at a department store.When he considered the color in terms of what his male friends might say, he decided he didn't like it.But then, his girlfriend walked up beside him and said he would look good in the sweater.Suddenly, the sweater was more appealing.George is experiencing:


A) loss aversion
B) risk invariance
C) the endowment effect
D) preference reversal
E) the sunk cost effect

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