Chapter 4, Problem 2BCQ

To determine

The effect of availability of reseller of tickets for the show on the consumer and producer surplus before these resellers in the market.

Introduction:

Consumer surplus refers to the amount of benefit a consumer receives when the actual price of a commodity is below the price which they were ready to pay for a particular commodity in the marketplace.

Producer surplus refers to the benefit a producer of the commodity derives from the sale of the commodity over and above the actual price decided in the marketplace.