3 women buy a $30 TV from a pawn shop. They each pay $10.
After the sale, the manager realizes he has not applied the $5 discount... the TV was actually $25.
He decides: "I'll keep $2 for myself and give them each back $1"
Now they have effectively paid $9 each.
$9 x 3 = $27... plus the $2 he kept equals $29.
What happened to the extra dollar?
Nothing. You just did your sums wrong.
$9 x 3 = $27...minus the $2 he kept equals $25.
Nathan mayer:He is holding $2 and they are holding $9... x 3
No they're not holding $9 x 3.....They parted with $9 x 3.
He kept $2 for himself and the store ended up with $25, which is what the discounted price was.
clever clogs on the mises board... believe it or not, that'll stump the average American.
And they say Austrians can't do math...seriously though - public schools, sheesh.
Hah, just re-read my reply; should've been:
'He effectively sold the television at $27, did he not? Not $25. The $2 he kept are included in the $2.'
The other bit was unnecessary.