A 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.Consider the first 2 units of the good that would be sold in this market (the vertical red line on the graph).which answer choices are correct for the graph given bellow? If Kai and Mint sold one unit each to Gob and Yam at a price of $6, the trade would be mutuallybeneficial.At a price of $6, Gob would benefit by $3 because she is paying $6 for a unit of the good whichis worth $9 to her.At a price of $6, Kai would benefit by $4 because she is getting $6 for a unit of the good whichis worth $2 to her.For the first 2 units of the good there is potential gain from trade of $7 for each of the 2 units.For the first 2 units of the good sold the difference between the value to buyer and seller is $9each. This means there is a potential gain from trade of $9 per unit.If the first 2 units of the good were exchange at a price of $7, Gob and Yam would be better offby $3 each-the difference between what the units are worth to them and the price they paid.If the first 2 units of the good were exchange at a price of $7, Kai and Mint would be better offby $3 each-the difference between what the units are worth to them and the price theyreceived.If the first 2 unit of the good were exchanged at a price of $6, the potential gain from trade of$7 for each of the units exchanged in divided so that both the buyer and the seller get a portionof the total gain.At a price of #6 more of the potential gain goes to the buyers.At a price of #6 more of the potential gain goes to the sellers. Ouantity Demanded12MarketDemandPriceYingSomFonNamGobYam101.244104.215263729310536510104017121110481Market Supply6-Market DemandQuantity SuppliedMarketPriceBoom1OlyCartoonMintSupply4234312421AppleKai10106111010843335325144941202 units10203040의의으

The international trade would result in the difference of the costs which result in the…

A 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. Consider the first 2 units of the good that would be sold in this market (the vertical red line on the graph). which answer choices are correct for the graph given bellow?

A 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. Consider the first 2 units of the good that would be sold in this market (the vertical red line on the graph). which answer choices are correct for the graph given bellow?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 14RQ: What is an externality?

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What is an externality?
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