2. Suppose John has an antique lamp that he values at $400 and Brett values the lamp at $520. a. Can John and Brett both benefit from a trade? If so, what are the total gains from trade? 1 b. If they agree to a price of $470, what are John's and Brett's surpluses?

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2. Suppose John has an antique lamp that he values at $400 and Brett values the lamp at $520.
a. Can John and Brett both benefit from a trade? If so, what are the total gains from trade?
1
b. If they agree to a price of $470, what are John's and Brett's surpluses?
Transcribed Image Text:2. Suppose John has an antique lamp that he values at $400 and Brett values the lamp at $520. a. Can John and Brett both benefit from a trade? If so, what are the total gains from trade? 1 b. If they agree to a price of $470, what are John's and Brett's surpluses?
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