When trade is voluntary, who gains from it?
A)Either the seller or the buyer gains but not both.
B)Both the seller and the buyer gain, although not necessarily equally.
C)Both the seller and the buyer must gain equal amounts.
D)Neither the seller nor the buyer gains, but society in general gains.

Question

Quizplus · Accepted Answer

When trade is voluntary, both the seller and the buyer are willing to engage in the transaction because they both perceive that they will benefit from it. Therefore, both parties gain from the trade, although their gains may not necessarily be equal. This is known as the principle of mutual gains from trade.

When Trade Is Voluntary, Who Gains from It