By reselling the ticket instead of going to concert himself

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Reference no: EM13893219

Alex is willing to buy the last ticket to the Billy Bragg concert for $15, while Jake is willing to pay $25. Alex is first in line and buys a ticket for $15. He then resells his ticket to Jake for $20. By reselling the ticket instead of going to the concert himself, Alex caused:

a) a deadweight loss of $5.

b) total surplus to increase.

c) total surplus to decrease.

d) consumer surplus to decrease and producer surplus to increase.

Reference no: EM13893219

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