A Local Government Is Considering Replacing a Public Park with a New

Multiple Choice

A local government is considering replacing a public park with a new administrative building and decides to survey the city's residents. The citizens are asked how much they would be willing to pay in increased taxes to keep the public park and also how much they would be willing to receive in a tax refund in order to accept the destruction of the park. The citizens report that they would be willing to pay on average $25 each to keep the public park, but they would need to receive on average $50 in a tax refund to accept the destruction of the park. This illustrates:

A) negative framing.
B) the endowment effect.
C) loss aversion.
D) status quo bias.