Asked by
Haley Wright
on Dec 12, 2024
Verified
Isabella decides to buy a dress that Olivia has for sale; they agree on a price of $20. Which of the following best describes who gains and who loses from the transaction?
A) If the dress originally costs more than $20, Isabella gains and Olivia loses.
B) If the dress originally costs less than $20, Olivia gains and Isabella loses.
C) Both parties expect to gain from this transaction.
D) If Olivia gains from the transaction, Isabella must lose an equal amount.
Transaction
An exchange or transfer of goods, services, or funds between two or more parties, often involving a contractual agreement.
Gains And Loses
Refers to the increases or decreases in economic benefit, typically associated with investments or transactions.
- Comprehend the concept of voluntary exchange and how mutual benefits are derived from such exchanges.
Verified Answer
CG
Learning Objectives
- Comprehend the concept of voluntary exchange and how mutual benefits are derived from such exchanges.