Dawson bought 30 hats from Chloe. This trade gave Dawson a Consumer's Surplus of $30 and gave Chloe a Producer's Surplus of $10.It follows that the trade

Question 5 options:

1)

made both Dawson and Chloe worse off

2)

must have taken place at a price of $12

3)

generated a Social Surplus of $20

4)

generated a Social Surplus of $40