Answer
\$100
Work Step by Step
Loss to the seller of \$100
The car is low quality, so the buyer will definitely return it.
When the car is returned, the seller must pay \$5,000 + \$100 = \$5,100 back.
The seller originally received \$5,000, then must pay \$5,100, so the gain (actually loss) is:
\$5,000−\$5,100=−\$100
Answer (a): –\$100
