Question 4I paid $5 a ticket for 4 (non-refundable) tickets to a show that I can't use and can't resell, so l'mgoing to give them to my friends. I have two friends whose Marginal Willingness to Pay (MWTP)for the tickets are in the table below. I want to be fair to my friends, so I give them two ticketseach. What is the change in surplus if I allocated them efficiently instead?Do not include the $ sign and remember to include a negative sign if you want to say that surplushas decreased.A'sB'sMWTPMWTP1 $103 $652 $353 $31$55$434 $26$38

Surplus refers to the amount left over after the requirements are being met. The term surplus is…

Answered: I paid $5 a ticket for 4…

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter11: The Case For Free Markets: The Price System

Section: Chapter Questions

Problem 2TY

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