Assume that Joe is willing to produce another hamburger that costs $1 to make.Mary is hungry and is willing to buy a hamburger for $3.According to the equilibrium principle,Joe and Mary
A) will make a trade.
B) will only make a trade if Joe can get Mary to spend more than $3 for the hamburger.
C) will only make a trade if Mary can get Joe to charge less than $1 for the hamburger.
D) may or may not make a trade.
E) will never trade;they will look for better deals.

Question

Quizplus · Accepted Answer

According to the equilibrium principle, a trade will occur as long as the buyer's willingness to pay is equal to or greater than the seller's willingness to sell. Mary is willing to pay $3 for a hamburger, which is greater than the cost of production for Joe ($1). Therefore, Joe and Mary will make a trade.

Assume That Joe Is Willing to Produce Another Hamburger That