It Costs Suppliers $1 to Produce Each Additional Widget, and Widgets

Multiple Choice

It costs suppliers $1 to produce each additional widget, and widgets sell for $2. Some consumers are not willing to pay $2 for a widget but are nevertheless willing to pay more than $1. Which of the following statements is TRUE?

A) The market is at equilibrium.
B) Suppliers must be reaping big profits.
C) There are unexploited gains from trade.
D) Consumers will bid up prices.