Economist: Gifts of cash or gift cards, which allow the recipient to choose the actual gift, are more highly valued b...

on January 6, 2020

Not sure how to arrive at answer D

Here is my thinking for why D is wrong. If the suggested retail price is $60 by the economists argument the person would only pay on average about 2/3 or $40 for the item. Here in D the person is simply saying that the would not sell it for less then $30. But $30 is still less than $40 so I initially thought that is supports the argument. But is it the possibility that more than half encompasses full retail value of $60? If that is not the case then I'm can't see how the answer choice is supported. I actually liked A because A opens up the possibility that the gift can be returned and thus has value similar to a gift card because if returned the amount paid a should bee received especially if there is a gift receipt.

2 Replies

on January 6, 2020

Ok forget my post I misread the answer choice

Shunhe on January 8, 2020

Glad you figured it out! Feel free to ask if anything else pops up.