Juan McDonald is willing to pay $650 for a new iPad. He offers to pay $600 for an iPad at the Apple store. It costs Apple $700 to produce this iPad. A voluntary economic transaction between Juan and Apple _____ occur because ____ would be better off due to the transaction.
A)will; neither Juan nor Apple
B)will; both Juan and Apple
C)will not; only Juan
D)will not; only Apple

Question

Quizplus · Accepted Answer

A voluntary economic transaction will not occur because Apple would incur a loss by selling the iPad for $600 when it costs $700 to produce, making only Juan better off.

Juan McDonald Is Willing to Pay $650 for a New