Question

3. Hunter is an intelligent businessman. He has a knack for recognizing a good deal. Hunter was very interested when his friend, Leo, was trying to sell his Xbox 360. Leo was only asking $75 for the console and two controllers. Although slightly used, everything worked and was in good condition. If Hunter closes the deal, according to the nature of exchange, what is the agreed value of the items?

a. They are worth $75 because Hunter paid that amount.


b. They are worth around $200, and Hunter got a great deal.


c. The exact price can’t be determined because it is relative. They are worth more than $75 for Hunter, but at the time, they were worth less than $75 for Leo.


d. Hunter and Leo can’t determine the worth of the used items because they didn’t compare the costs of the used items and new items.


e. The market determines the value of the items based on supply and demand, so it doesn’t matter what value Hunter or Leo gi

Answer 1

a. They are worth $75 because Hunter paid that amount.

Step-by-step explanation:

Remember, we are considering the value based on the agreed value made by both parties; which means that both Hunter and Leo didn't consider the market price of the game console, but held the view that; what was been exchanged had a value of $75.

So they are worth $75 because Hunter paid that amount they had agreed on.