Trading Challenge Economics
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Trading Challenge Economics
Scenario: The Harbour Market
At a community exchange market, traders can swap items directly or sell them for cash. Riley brings a reusable insulated drink bottle. Riley would be happy to trade it for a calculator worth at least NZ$18 to them. Morgan has a calculator and would accept the bottle if they value it at NZ$12 or more. A used calculator sells for about NZ$20 at nearby stalls. No one is required to trade.
- Yes. Riley values the calculator at least NZ$18, while Morgan values the bottle at least NZ$12.
- No. The calculator's nearby selling price is NZ$20, so no swap can benefit both.
- No. Morgan must value the bottle more than Riley values the calculator.
- Yes, but only if the bottle cost exactly NZ$12 to produce.
Buyer
Maximum willingness to pay
Hana
$12
Ruben
$10
Buyer
Maximum willingness to pay
Seller
Minimum willingness to accept
Casey
$7
Dev
$11
2 printable pages
Page 1
Page 2
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