Question: (it can be more than one answer) fA Gain from Trade occurs when a unit is sold for a price greater than the unit of
(it can be more than one answer)



\fA Gain from Trade occurs when a unit is sold for a price greater than the unit of the good is worth to a seller and, simultaneously, bought for a price less than the good is worth to a buyer. A trade is Mutually Beneficial when both parties, buyer and seller, are bettor off after exchange occurs. Mutually beneficial trades can occur over a range of prices. Where in that range of prices, exchange occurs determines how the Gain from Trade is dividend between buyer and seller. Consider the first 2 units of the good that would be sold in this market (the vertical red line on the graph).If the first 2 units of the good are exchanged at a price of $6, the exchange is mutually beneficial. If the first 2 units of the good are exchanged at a price of $8, the exchange is mutually beneficial. If the first 2 units of the good are exchanged at a price of $4, the exchange is mutually beneficial. O At a price of $8 more of the potential gain from trade goes to buyers. At a price of $8 more of the potential gain from trade goes to sellers. ) At a price of $4 more of the potential gain from trade goes to buyers. O At a price of $4 more of the potential gain from trade goes to sellers. Trades that occur anywhere between a price of $2 and $9 would be mutally beneficial. As the price moves higher in the $2-$9 range more of the potential gain from trade is captured by sellers. ) As the price moves higher in the $2-$9 range more of the potential gain from trade is captured by buyers.. O) As the price move lower in the $2-$9 range more of the potential gain from trade is captured by sellers. O As the price move lower in the $2-$9 range more of the potential gain from trade is captured by buyers
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