Government regulation preventing the reselling of tickets

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Reference no: EM13893274

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. Alex could sell his ticket to Jake for $20, but he can't because of government regulation preventing the reselling of tickets. The regulation, then, is causing:

a. potential total surplus to increase.

b. a deadweight loss of $5.

c. potential total surplus to decrease.

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

Reference no: EM13893274

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