Trade will take place:
A) if the maximum that a consumer is willing and able to pay is less than the minimum price the producer is willing and able to accept for a good.
B) if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good.
C) only if the maximum that a consumer is willing and able to pay is equal to the minimum price the producer is willing and able to accept for a good.
D) None of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

Trade occurs when buyers are willing to purchase goods at a price above the minimum price set by producers. This implies that the maximum price a consumer is willing to pay should be higher than the minimum price that the producer is willing to accept. Therefore, option B is the correct answer.

Trade Will Take Place