Jose sells his economics textbook from last semester, which he could sell back to the bookstore for $40, to Adolfo for $150. Adolfo had planned to pay $240 for the textbook at the bookstore. Which of the following statements is TRUE? A This trade did not create value because Adolfo is buying the textbook for more than Jose could get from the bookstore. B Both Jose and Adolfo are made better off by the trade. C Adolfo is made better off by the trade, but Jose is made worse off by the trade. D Jose and Adolfo must have the same preferences for the textbook.
Jose sells his economics textbook from last semester, which he could sell back to the bookstore for $40, to Adolfo for $150. Adolfo had planned to pay $240 for the textbook at the bookstore. Which of the following statements is TRUE?
A This trade did not create value because Adolfo is buying the textbook for more than Jose could get from the bookstore.
B Both Jose and Adolfo are made better off by the trade.
C Adolfo is made better off by the trade, but Jose is made worse off by the trade.
D Jose and Adolfo must have the same preferences for the textbook.
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