Ingrid has been waiting for the show "Mamma Mia!" to come to town. When it finally does come, tickets cost $60. Ingrid's reservation price is $75. But when Ingrid tries to buy a ticket, they are sold out. Ingrid decides to try to buy a ticket from a scalper (a person who purchased extra tickets at the box office with the intent to resell them at a higher price) . If Ingrid finds someone who is willing to sell her a ticket for $70, she should:
A) not purchase the ticket because it is overpriced.
B) not purchase the ticket because the cost to the scalper was only $60.
C) purchase the ticket because doing so will make her $5 better off.
D) purchase the ticket even though doing reduce total economic surplus.
Correct Answer:
Verified
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