The Role of Quantity vs. Price in Market Efficiency
An economic commentator states, 'To determine if a market outcome is efficient, the most important factor to consider is the price. A low price benefits consumers and a high price benefits producers, so efficiency is just a matter of perspective.' Critically evaluate this statement. In your response, explain why the quantity of the good traded is the fundamental criterion for assessing whether all potential gains from trade have been achieved, and clarify the role that price plays in this context.
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Ch.7 The firm and its customers - The Economy 2.0 Microeconomics @ CORE Econ
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The Role of Quantity vs. Price in Market Efficiency
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