Gordon perceives a $10 discount on a $40 sweater to be more positive than a $10 discount on a $300 TV.Gordon's varying perceptions of $10 in each situation reflects ____.

Question

Quizplus · Accepted Answer

Gordon's varying perceptions of $10 in each situation reflect a biased perception of utility, where he places a higher value on the $10 discount on the $40 sweater due to his personal preferences and biases. This is an example of how individuals may not always make rational judgments when it comes to economic decision-making.

Gordon Perceives a $10 Discount on a $40 Sweater to Be