Suppose a student values a textbook at $50,and the publisher is unwilling to sell the textbook at a price lower than $30.What price will lead to an efficient transaction between the student and publisher?
A) a price of $0
B) any price greater than $0 and less than $30
C) any price greater than or equal to $30 and less than or equal to $50
D) any price greater than $50

Question

Quizplus · Accepted Answer

In order for the transaction to be efficient, both the student and the publisher need to agree on a price that falls within their willingness to pay or willingness to sell. The student values the textbook at $50, which represents their maximum willingness to pay. The publisher is unwilling to sell the textbook below $30, which represents their minimum willingness to sell. Therefore, the price that will lead to an efficient transaction between the student and publisher must fall between $30 and $50. Choice C is the only option that satisfies this requirement.

Suppose a Student Values a Textbook at $50,and the Publisher