Creating a market that was previously missing:
A) redistributes surplus from buyer to seller.
B) creates more total surplus.
C) redistributes surplus from seller to buyer.
D) redistributes surplus from a pre-existing market to the one that was previously missing.

Question

Quizplus · Accepted Answer

Creating a previously missing market leads to an increase in total surplus as it enables buyers and sellers to engage in transactions they were unable to do so before. It does not necessarily lead to a redistribution of surplus between the two parties or from a pre-existing market.

Creating a Market That Was Previously Missing