Question

Deltra was willing to purchase a dozen cookies for $50 that Deirdre was willing to sell for anything more than $27. If they agreed on a price of $31, how much total value was created in this exchange

Answer 1

$23

Step-by-step explanation:

Calculation for how much total value was created in this exchange

First step is to calculate Deltra Surplus

Using this formula

Surplus (Deltra)=Purchase value - Agreed Price

Let plug in the formula

Surplus(Deltra)=$50−$31

Surplus(Deltra)=$19

Second step is to calculate Deirdre Surplus using this formula

Surplus (Deirdre)= Agreed Price - Amount Willing to sell

Let plug in the formula

Surplus(Deirdre)=$31−$27

Surplus(Deirdre)=$4

Now let calculate the total value that was created in this exchange

Total value=$19+$4

Total value=$23

Therefore the amount of total value that was created in this exchange is $23