Suppose you own a bicycle but haven't found the time to ride it much lately. these days, it is only worth $41 to you. one of your close friends, who recently got a job at the college bookstore two miles down the road, wants to take it off your hands. he offers you $70 for the bicycle, and you gladly accept. your friend is also happy because he thinks the bicycle is worth $91 . how much total value was created from this trade?

Value of the bike = $41

Value of the bike for buyer = $70

Bike value buyer thinks = $97

Solution:

Value for bicycle owner: $70 - $43 = $27
Value for buyer: $97 - $70 = $27
Total value: $27 * 2 = $54

answer; i believe the correct answer is (180)

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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