If some buyers and sellers are prevented from trading, the efficient allocation will not occur.

Question

Quizplus · Accepted Answer

The exclusion of certain buyers and sellers from trading reduces the pool of potential participants in the market, limiting the number of trading possibilities and preventing the efficient allocation of goods and resources. This can result in situations where mutually beneficial transactions do not occur, and losses in efficiency and welfare may arise.

If Some Buyers and Sellers Are Prevented from Trading, the Efficient