If you purchase a gift worth $25 for your sister, but your sister would be willing to pay only $10 if she bought the item for herself, then the
A)total utility of the gift is $35.
B)total utility of the gift is $15.
C)marginal utility of the gift is $15.
D)loss of value in the gift is $15.

Question

Quizplus · Accepted Answer

The loss of value in the gift is $15 because you spent $25 on a gift that your sister values at only $10, indicating a discrepancy or loss in value of $15.

If You Purchase a Gift Worth $25 for Your Sister