Question

1. I recently sold my used car. If no new production occurred for this transaction, how could it have created value?

Answer 1

It is given that a new car was sold recently to a buyer and no new production occurred for this transaction.

But we know that a transaction has occurred in which both parties have mutually agreed to sell and buy the car.

This shows that, the transaction occured only because both the seller and buyer believes that they are receiving a benefit out of this transaction.

Hence, even if no new production occurred for this transaction, value was created.