Question

If you are willing to purchase a house for $500,000 and you purchase the house for $500,000, this transaction will generate:

Answer 1

c. $0 worth of buyer surplus and unknown amount of seller surplus

Step-by-step explanation:

Given that

Selling price of house = $500,000

The purchase value of house =$500,000

By considering the above information, the purchase and sales value are the same which reflects that the buyer surplus is zero and there is no definite amount or unknown amount of seller surplus as the data is not given.

Hence, the correct option is c.