Selling tickets to graduation ceremonies has long been a tradition among students at institutions that limit the number of guests.Suppose your classmate,Heidi,purchased two tickets for $40 each.Is this transaction economically efficient?

Question

Quizplus · Accepted Answer

The transaction between Heidi and the seller of the tickets is economically efficient because it was a voluntary exchange that benefited both parties. Heidi was willing to pay $40 per ticket to attend the graduation ceremony with her guests, and the seller was willing to sell the tickets at that price. Both parties deemed the exchange to be mutually beneficial, which is the hallmark of a voluntary transaction in a free market economy. Choices A, C, and D are incorrect because they do not accurately reflect the economic efficiency of this transaction.

Selling Tickets to Graduation Ceremonies Has Long Been a Tradition