It costs suppliers $1 to produce each additional widget, and widgets sell for $2. Some consumers are not willing to pay $2 for a widget but are...

It costs suppliers $1 to produce each additional widget, and widgets sell for $2. Some consumers are not willing to pay $2 for a widget but are nevertheless willing to pay more than $1. Which of the following statements is TRUE?

Select one:

a. Suppliers must be reaping big profits.

b. The market is at equilibrium.

c. There are unexploited gains from trade.

d. Consumers will bid up prices.