Gains from trade are maximized at the:

Question

Quizplus · Accepted Answer

Gains from trade are maximized at the equilibrium price and quantity, where the quantity demanded by buyers equals the quantity supplied by sellers, and both parties can exchange goods or services at a mutually beneficial price. At this point, the gains from trade are maximized because any deviation from the equilibrium price and quantity would result in losses for one of the parties involved. Therefore, the equilibrium is the most efficient and socially optimal outcome in a market.

Gains from Trade Are Maximized at The