Suppose Appliance Mart buys a used refrigerator for $100,repairs it,and resells it for $250.The result of this transaction is to
A)increase the value of national product by $250.
B)leave the value of national product unchanged.
C)increase the value of national product by $150.
D)decrease the value of national product by $100.
E)There is insufficient information to know.

Question

Quizplus · Accepted Answer

The transaction results in an increase in the value of national product by $150, which is equal to the difference between the selling price of $250 and the cost of the used refrigerator of $100. This increase represents the value added by Appliance Mart through repairing and reselling the refrigerator.

Suppose Appliance Mart Buys a Used Refrigerator for $100,repairs It,and