Which situation is likely to displease the typical undergraduate more? (Assume all four situations apply to the person and that the person would have to pay for each with his or her own money.)
a. A 10 increase in tuition (i.e., from 1,500 to 1,510)
b. A new 10 fee for ID activation each semester (a previously free service)
c. A 10 increase in the cost of a required 60 textbook (i.e., 60 to 70)
d. A 10 increase in the price of a plane ticket to the student's hometown (i.e., from 500 to 510 for a ticket from Chicago to L.A.)
Question 2
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 ____.
a. a biased perception of utility
b. confirmation bias
c. self-serving bias
d. the gambler's fallacy
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