If Sean sells Tom a tennis racket for $50, we would expect

A) both parties to gain from this transaction.
B) Sean to gain from the transaction, while Tom loses.
C) Tom to gain from the transaction, while Sean loses.
D) the well-being of both parties to be unchanged.

Question

Gabriel Hassouni · Accepted Answer

Final Answer : A, Explanation :  In a voluntary transaction, both parties typically gain because Sean values the $50 more than the tennis racket, and Tom values the tennis racket more than the $50.

If Sean sells Tom a tennis racket for $50, we would expect

A) both parties to gain from this transaction.
B) Sean to gain from the transaction, while Tom loses.
C) Tom to gain from the transaction, while Sean loses.
D) the well-being of both parties to be unchanged.

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Learning Objectives

Related questions

If Sean sells Tom a tennis racket for $50, we would expectA) both parties to gain from this transaction.B) Sean to gain from the transaction, while Tom loses.C) Tom to gain from the transaction, while Sean loses.D) the well-being of both parties to be unchanged.

Definitions

Learning Objectives

Learning Objectives

Related questions

If Sean sells Tom a tennis racket for $50, we would expect

A) both parties to gain from this transaction.
B) Sean to gain from the transaction, while Tom loses.
C) Tom to gain from the transaction, while Sean loses.
D) the well-being of both parties to be unchanged.