Quiz 3 Framing effects arise when people make different choices depending on how a choice is \"framed\" even when the underlying payoffs do not change. Framing effects can be explained by prospect theory, which assumes: A. Decision-makers focus on changes relative to the status quo rather than on their absolute level of income. B. People are risk-averse in the domain of losses and risk preferring in the domain of gains. C. Most decisions-makers exhibit \"level 2 reasoning\". D. All of the above