Multiple Choice
Tim values treats for his dog at $10 per box, and John values them at $6 per box. If the price of dog treats is $3 per box but only one box is available between these two buyers, then gains from trade will be maximized when:
A) Tim buys the treats.
B) John buys the treats.
C) either buys the treats, since they both value them more than the market price.
D) consumer surplus is equal to $3.
Correct Answer:
Verified
Correct Answer:
Verified
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