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Bill has only two dollars on him, but needs three dollars for the cab fare to get home. He comes up with an idea. He goes to a pawn shop and pawns his $2 for $1.50. He then finds Steve and sells him his $2 pawn ticket for $1.50. Since Bill ends up with the $3 he needs, who is out the extra dollar and why?
AnswerSteve is out the extra dollar. When he goes to the pawn shop to collect the $2, he will need to return the pawn ticket, plus the $1.50 that the pawn broker gave to Bill. He will then have paid $3 for two dollars.
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