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5-6 paragraph discussion post

Date Posted: 20/06/2019
Category: Business
Due Date: 20/06/2019
Instruction
Watch this 50 minute podcast. It is called Mind Over Money and produced by Nova. But you can call it up on You Tube. The site is https://www.youtube.com/watch?v=6sjtidkYAec You should find this a very fascinating video that give you insight as to how both the Economics field and the Physiology field are coming together to learn how consumers make their choices. This is unlike what we studied last week regarding Utility theory. Here is the question. Classical economist believe that consumers can not over pay for the cost of a product because rational consumers will never pay more than they believe a product is worth. That being said, then how is ti possible that during the housing market bubble people were paying well above the equilibrium price of a house. How could this possibly happen (this is what behavioral economist try to explain in the Nova special). What was going through consumers mind when they where paying $450k for a house that was worth $225k. Need to be 5-6 paragraphs long and reference either material from the text (and the page number where you got it) or reference the material in the Nova special.
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