Imagine Livia values a car at $30k and Sunrise Chevrolet values the same car at $20k.

Imagine Livia values a car at $30k and Sunrise Chevrolet values the same car at $20k. If a transaction is completed between these two agents, the transaction will generate

  • $6,000 worth of buyer surplus and $4,000 of seller surplus
  • $1,000 worth of buyer surplus and unknown amount of seller surplus
  • No surplus
  • $6,000 worth of buyer surplus and unknown amount of seller surplus
  • $4,000 worth of seller surplus and unknown amount of buyer surplus

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