Health clubs typically experience an increase in one-year memberships in January, but many new customers cancel their memberships before the end of the year.Which of the following is the best explanation for this behaviour?
A)Some health club members suffer minor injuries that prevent them from working out.
B)Some people are overly optimistic about their future behaviour.
C)Some people fail to treat their membership fees as sunk costs.
D)Some members receive utility from activities they believe are popular.

Question

Quizplus · Accepted Answer

Many people make New Year's resolutions to exercise more and join a gym in January as a way to achieve this goal. However, some may overestimate how much time they have or how committed they are to working out, leading them to cancel their membership before the year is up. This reflects an overly optimistic view of their future behavior.

Health Clubs Typically Experience an Increase in One-Year Memberships in January