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Question 35 options: Suppose you are willing to pay $100 for a used textbook. You buy...

Question 35 options:

Suppose you are willing to pay $100 for a used textbook. You buy it for $60 from a seller who would be willing to sell it for as low as $30. How much value is created as a result of this exchange?

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Answer #1

Answer

The value is total surplus

Value =willines to pay of buyer -the willingness to accept of the seller

=100-30

=$70

the value created is $70

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