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If a used car dealer buy a car for 2000 dollars and resell it for 2500 dollars, only 500 dollars can be added into GDP calculation.()
You are in the market for a used car. At a used car lot, you known that the blue book value for the cars you are looking at is between $20,000 and $24,000. If you believe the dealer knows as much about the car as you, how much are you willing to pay Why Assume that you only care about the expected value of the car you buy and that the car values are symmetrically distributed.