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:

Question

Quizplus · Accepted Answer

By reselling the ticket, Alex has increased the total amount of money that was exchanged in the transaction from $15 to $20, which increases the total consumer and producer surplus. Neither party is worse off from the transaction, as Alex sold the ticket for more than he bought it, and Jake still got a ticket to the concert for less than he was willing to pay. Therefore, there is no deadweight loss.

Alex Is Willing to Buy the Last Ticket to the Billy