Question

in vernon smith's classroom experiments, total gains from trade were very close to being maximized throughout the experiment because:

Answer 1

In vernon smith's classroom experiments, total gains from trade were very close to being maximized throughout the experiment because the quantity of goods supplied is more than the quantity of goods that the consumer demanded for leading to a surplus.

Why is the gain not Maximized?

The gain was not maximized because the consumer were not willing to pay for the goods that they do not demand for and they where also not willing to pay less for the good.

This occurs when a goods exist in abundance.

Therefore, In vernon smith's classroom experiments, total gains from trade were very close to being maximized throughout the experiment because the quantity of goods supplied is more than the quantity of goods that the consumer demanded for leading to a surplus.

Learn more on surplus below

https://brainly.com/question/1483399

#SPJ12