Political candidates often hold fund raisers by charging "per plate" for dinner. Wendy purchased four tickets to a $1,000 per plate dinner for a local city council candidate. Is this transaction economically efficient?
A) No, political candidates should never be allowed to overcharge for a fund raising dinner.
B) Yes, it was a voluntary exchange that benefited both parties.
C) No, Wendy paid too much for four dinners.
D) Yes, it is efficient only from the perspective of the candidate but not from the perspective of Wendy.

Question

Quizplus · Accepted Answer

The transaction was voluntary, meaning that both parties agreed to the price of $1,000 per plate. Therefore, it was efficient because both parties believed that the benefits of the transaction exceeded the cost. Additionally, it is important to note that the price per plate is based on the candidate's perceived value and not just the cost of the meal itself.

Political Candidates Often Hold Fund Raisers by Charging "Per Plate