Figure 7-22
-Refer to Figure 7-22.If 40 units of the good are bought and sold,then
A)the marginal cost to sellers is equal to the marginal value to buyers.
B)the marginal value to buyers is greater than the marginal cost to sellers.
C)the marginal cost to sellers is greater than the marginal value to buyers.
D)producer surplus would be greater than consumer surplus.

Question

Figure 7-22 
-Refer to Figure 7-22.If 40 units of the good are bought and sold,then
A)the marginal cost to sellers is equal to the marginal value to buyers. 
B)the marginal value to buyers is greater than the marginal cost to sellers. 
C)the marginal cost to sellers is greater than the marginal value to buyers. 
D)producer surplus would be greater than consumer surplus.

Quizplus · Accepted Answer

If 40 units are bought and sold, the marginal value to buyers is greater than the marginal cost to sellers, indicating that the market is not in equilibrium and there is potential for more mutually beneficial trades.

Figure 7-22 -Refer to Figure 7-22.If 40 Units of the Good Are