Question:
You are considering buying gifts for a pair of friends. Both truly enjoy video gaming. However, both have reduced their budget on these items because of the temptation that they can cause. Dana is tempted to buy expensive games when they are first on the market rather than waiting to purchase the games once prices are lower. Thus, Dana has limited himself only to purchase games that cost less than $35. Alternatively, Avery is tempted to play video games for long periods of time, neglecting other important responsibilities. Thus, Avery has limited herself to playing video games only when at other people's homes. Would Dana be better off receiving a new game that costs $70 or a gift of $70 cash? Would Avery be better off receiving a video game or an equivalent amount of cash? Why might these answers differ?