Question

Give an example of how a voluntary trade or purchase made you and the others involved in the transaction better off. Really stretch your thoughts into all the details of your deal.

Answer 1

Two important aspects of voluntary trade:

1. Both people would gain.
2. They will have lower transaction costs; They promote economic efficiency.

Example:: Booking a DSLR camera for rent

Booking a camera with the other party and decided to meet at a specific place.But that party is unavailable to meet the demand I made and made me wait.the time I had waited is the transaction cost. Then that time made me doubt whether to go for the trade or not.

But the problem is whether go for the other party or wait for same party.the transaction cost is becoming more as to again start the procedure of booking and meeting which takes more time and cost.

Then the same party arranged the better camera and where the both parties better off.

The little more wait made good deal and reduced the transaction cost and made efficient from reaching bargain.