Consider the model of "gradual flow of information" in Hong and Stein (2007). Suppose that there are two possible models, model I and model II, that determine dividends in financial markets. In economy A, every investor believes in model I. In economy B, 40% of the investors believe in model I and 60% believe in model II. Suppose also that prices equal fundamental values in both economies. Which of the following statements is true.

	A.	There is trading in economy B but no trading in economy A.
	B.	There is trading in both economies.
	C.	There is trading in economy A but no trading in economy B.
	D.	There is no trading in both economies.