If markets are perfectly competitive and price has a value other than its equilibrium value,then is it possible to identify an unrealized transaction that would make the buyer and the seller better off?
A) Yes,always.
B) Yes,often.
C) Yes,occasionally.
D) Yes,but only if the government intervenes to set the price.
E) No,under no circumstances.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, if the price is not at equilibrium, there are buyers willing to pay more and sellers willing to accept less, leading to unrealized transactions that could benefit both parties.

If Markets Are Perfectly Competitive and Price Has a Value