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Alex Is Willing to Buy the Last Ticket to the Billy

Question 117

Multiple Choice

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) the sum of the consumer and producer surplus to increase.
B) the sum of the consumer and producer surplus to decrease.
C) a deadweight loss of $5.
D) consumer surplus to decrease and producer surplus to increase.

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