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
