Originally posted by ray1993 a shop keeper ( shopA ) sells an item for $31.
a man came and wanted to buy it with a $100 note.
unfortunately the shopkeeper doesn't have any change, so he went to the other shop for change.
he gave the other shopkeeper ( shopB ) $100 for $100. that makes senses.
so, he ( shopA ) finally got the change of $100 and gave back that man $69. right? s ...[text shortened]... loss of shop keeper A after paying shop keeper B $100, given the cost price of the item is $16.
the loss is 185$ (100$ given to shopB + 69$ given to client + 16$ cost price of item).
thinking about profit, it should be 200$ (add +15$ of non-profit).
Originally posted by ray1993 a shop keeper ( shopA ) sells an item for $31.
a man came and wanted to buy it with a $100 note.
unfortunately the shopkeeper doesn't have any change, so he went to the other shop for change.
he gave the other shopkeeper ( shopB ) $100 for $100. that makes senses.
so, he ( shopA ) finally got the change of $100 and gave back that man $69. right? s ...[text shortened]... loss of shop keeper A after paying shop keeper B $100, given the cost price of the item is $16.
Originally posted by hSilva I believe the $100 he gave were not valid currency....
Agreed. This is why I place its value at $0. It only enters into the problem because the shopkeeper ASSUMED it had $100 value.
The full and real loss came not when he gave a value-less piece of paper to another shopkeeper for change (a temporary gain for him, balanced by an equal and inevitable liability), but when he accepted it in exchange for goods and change.