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A potential buyer of a car values it at $30,000. The owner (potential seller) of the same care values it at $20,000. If the transaction
A potential buyer of a car values it at $30,000. The owner (potential seller) of the same care values it at $20,000. If the transaction is consummated as a price of $24,000, the transaction will generate:
- a)No surplus
- b)$4,000 worth of seller surplus and unknown amount of buyer surplus
- c)$6,000 worth of buyer surplus and $4,000 of seller surplus
- d)$6,000 worth of buyer surplus and unknown amount of seller surplus
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