Can someone please help? It does not have to be a lengthy explanation. Even Basics on which I can build will help.

3/14/2021 Exam 2 Spring 2021 2021SP - MICROECON PRINCIPLES 50 220 5012.82 Question 18 Not yet graded / 12 pts Khalid and Sarah have lived in a house that was gifted to them when they got married five years by generous relatives. Current market prices are about 10% higher than they were before the pandemic hit in March. They received an offer of $300,000, which is the average price homes are selling for in their area, 1, Describe a possible response they could make which demonstrates the endowment effect (explaining what is meant by endowment effect). What factors go into their reasoning? 2, Describe a possible response they could make which would demonstrate an economically rational decision, explaining what is meant by an economically rational decision. What factors would go into that reasoning? Remember to use the economic terms you have learned in the course, Your