If Matt trades two candy bars to Andy in exchange for one baseball card,
A) Matt must have valued the baseball card more than the two candy bars.
B) Andy must have valued the two candy bars more than the baseball card.
C) Matt must lose an equal amount if Andy gains.
D) Both a and b are correct, c is incorrect.

Question

Quizplus · Accepted Answer

In a voluntary trade, both parties exchange items they value less for items they value more. Thus, Matt values the baseball card more than the candy bars, and Andy values the candy bars more than the baseball card. The trade is mutually beneficial, so Matt's loss is not necessarily equal to Andy's gain.

If Matt Trades Two Candy Bars to Andy in Exchange