Pop quiz

Electrolux_Green_2Does the average CC reader understand more about Economics than Nicolás Maduro? Let’s see.

Suppose you sell vacuum cleaners in Caracas. You bought the vacuum cleaner from the wholesaler at BsF1,200. You paid for it in cash, and you owe the wholesaler nothing. The vacuum cleaner is yours to resell.

You are selling it for BsF 1,500.That is the price at which you have decided to sell it, it’s been marked that way.

The wholesaler informs you that, due to inflation, the wholesale price has shot up to BsF2,200.

Question: are you making a profit?