Question

Suppose you own a bicycle but haven't found the time to ride it much lately. These days, it is only worth $25 to you. One of your close friends, who recently got a job at the college bookstore two miles down the road, wants to take it off your hands. He offers you $70 for the bicycle, and you gladly accept. Your friend is also happy because he thinks the bicycle is worth $94 . How much total value was created from this trade? $

Answer 1

The total value created from this trade can be calculated by subtracting the value of the bicycle to you from the value of the bicycle to your friend and adding it to the value of the bicycle to you.

The value of the bicycle to you is $25 and the value of the bicycle to your friend is $94.

Therefore, the total value created from this trade is: $94 - $25 + $70 = $139

So, the total value created from this trade is $139.