Annie is an excellent baker and Sam has a plentiful farm.If Sam trades eggs and butter to Annie for some of Annie's bread and pastries,
A)only Sam is made better off by trade.
B)only Annie is made better off by trade.
C)both Sam and Annie are made better off by trade.
D)neither Sam nor Annie are made better off by trade.

Question

Quizplus · Accepted Answer

By trading, Annie gets access to fresh eggs and butter from Sam's farm, which she can use to make more delicious pastries and bread. Sam, on the other hand, gets to enjoy Annie's tasty baked goods. Both parties end up with goods that they value more than what they gave up, so they are both better off after the trade.

Annie Is an Excellent Baker and Sam Has a Plentiful