Question 21 / 21:  Explain the following scenario.

Rory looked at the mess that the burglars had made . . .

Answer: 

People don't care simply about the market value of things, they

also value items for emotional reasons. Rory could eventually replace

the other items over time by buying new ones. But he won't

be able to replace the lost ring, even though he would be willing

to pay a lot of money to do so.

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Economy Foundations

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Attribution:  Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY
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