Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 2 - The Key Principles of Economics - Exercises - 2.3 The Principle of voluntary Exchange - Page 45: 3.7

Answer

The neighbors were paid by the resident.

Work Step by Step

Because voluntary exchange involves both parties being happy, the resident likely paid the neighbors for cutting down the trees. In this case, the resident is happy that she has a better view, and the neighbors are happy that they now have extra money. Both people are better off.
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