Which of the following is not an example of arbitrage?
A) A retailer buying a product at a certain price from a wholesaler and selling for more to customers.
B) The new reader selling for the same price at retailers, online retailers, and directly from the company.
C) Buying a popular toy at a discount store and selling it on e-Bay for 10 times the price you bought it for.
D) Foreign visitors buying items on a visit to the U.S., which they can sell for more when they return home.

Question

Quizplus · Accepted Answer

Arbitrage involves taking advantage of price differences in different markets for the same asset. Choice B describes a situation where the product is sold at the same price across different platforms, which does not involve exploiting price differences, hence it is not an example of arbitrage.

Which of the Following Is Not an Example of Arbitrage