Who gains from trade, and when is it efficient?
See how buyer values and seller costs become surplus areas, and why too little or too much trade loses gains. Then practise with 10 questions and worked answers.
A buyer’s value sets the most they will pay
| Buyer | Value | Buy? | Surplus |
|---|---|---|---|
| A | $48 | Yes | ? |
| B | $36 | Yes | ? |
| C | $28 | Yes | ? |
| D | $20 | No | ? |
| Total | 3 | ? |
A buyer’s value sets the most they will pay
Buyer values at a stated price
| Buyer | Value | Buy? | Surplus |
|---|---|---|---|
| A | $48 | ? | ? |
| B | $36 | ? | ? |
| C | $28 | ? | ? |
| D | $20 | ? | ? |
| Total | ? | ? |
Exam coming up and the surplus triangles still blur together?
Bring your problem sets. We work through them together until every type feels routine.
Questions, answered.
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