Scenario 2

A stall at the Glebe markets is selling a vase for $500. The market value of the vase is more like $150, which is what the same model sells for at two nearby shops. In two years the vase has not sold.

You are riding past on your bicycle when you spot the vase. You immediately like it and agree to buy it, however you don’t have the money on you. The stall owner completes the paperwork, which you sign, and then you go to find an ATM. On the way to the ATM, you see the same vase selling for $150.

You return and tell the stall owner that you are only willing to pay $150.

Question: How much are you required to pay the stall owner? Why?

Please keep your answer to between 40 to 100 words.