Juan McDonald is willing to pay $900 for a new iPad. He offers to pay $800 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

Juan and Apple would both benefit from the transaction. Juan would get the iPad he wants for a price he is willing to pay, and Apple would make a profit of $100 ($800 - $700). Therefore, a voluntary economic transaction between Juan and Apple will occur because both parties would be better off due to the transaction.

Juan McDonald Is Willing to Pay $900 for a New