Lou buys classic video games at a garage sale for $30 and resells it on eBay to Kyle for $60.Which of the following statements is true?

Question

Quizplus · Accepted Answer

The transaction has made both Lou and Kyle better off. Lou has made a profit by selling the game for more than he bought it, and Kyle is willing to pay $60 for the game, which means he values it more than the price he paid. This creates a mutually beneficial exchange and increases economic efficiency. Additionally, we cannot determine whether or not Kyle enjoyed any consumer surplus from the information given in the question.

Lou Buys Classic Video Games at a Garage Sale for $30