Bob has an idea on how to make some extra cash. He pawns $30 at the local pawn shop for $15. Then he goes to the pub next door and sells the $30 pawn ticket to Jim for $20. It looks like both make money on the deal. Is that true? Who gets the short end of the transaction? Is it Bob, Jim, or the pawn shop?
The person receiving the short-end of the transaction is Jim who lost 5 dollars.
He pays Jim $20, and then $15 to the pawn shop, in order to get $30.
Edited on September 22, 2023, 3:53 am
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