Suppose that towns collect resources from their surroundings. then, through trade, they attempt to obtain other desirable items. mortarville, an urban town that specializes in brick and ore, wants wood to build roads so that it can expand and connect to other major cities. mortarville has a willingness to pay $50 for wood, since wood is hard for them to obtain. mayflair also needs wood to build grain silos for their wheat harvests. mayflair is willing to pay $45 for wood. timber, the only foresting company, sets the price of wood at $60 . the change in total surplus that arises due to trades between timber and the towns is john finds a set of wood in his garage which he is willing to sell for no less than $35 . john chooses to sell the set to mayflair for $40 instead of to mortarville for $45 . as a result of john's transaction with mayflair, total surplus decreased, and the market is inefficient. total surplus increased, and the market is efficient. total surplus decreased, but the market is efficient. total surplus increased, but the market is inefficient.