Given the scenario described, if the market price of hammers was $10, then:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13.
A. only House Depot would gain surplus by supplying hammers to the market.
B. only House Depot and Lace Hardware would gain surplus by supplying hammers to the market.
C. House Depot, Lace Hardware, and Bob's Hardware would all supply hammers to the market, but Bob's would lose surplus.
D. only House Depot and Bob's Hardware would supply hammers to the market.
A. only House Depot would gain surplus by supplying hammers to the market.
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