You See on Kijiji That a Used XBOX One Sells

question 3

Multiple Choice

You see on Kijiji that a used XBOX One sells for $100 and a new XBOX One sells for $300.Is this an arbitrage opportunity?

• A)No.,because the market for a used XBOX One is not the same as the market for a new XBOX One.
• B)No,because the market for a used XBOX One is a competitive market.
• C)Yes,because the market for a used XBOX One is a competitive market.
• D)Yes,because the market for a used XBOX One is not the same as the market for a new XBOX One.
• E)No,because Kijiji is not a competitive market.

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Definitions:

M Rises

An increase in the money supply in an economy, which can affect inflation and interest rates.

Q Falls

Indicates a decrease in the quantity demanded or supplied of a good or service, often in response to changes in price, income, or other factors.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period.

Stock of Money

The total quantity of money available within an economy at a specific time, including cash, bank deposits, and liquid financial instruments.