Question

A ticket broker purchases two tickets to an upcoming concert for $30 each, although the original ticket holder would have been willing to sell each ticket for $10. The ticket broker later sells the tickets to a new buyer for $50 each. If the new buyer would have been willing to pay up to $90 for each ticket, what fraction of the total value created is captured by the broker?

Answer 1

Answer:

Using these assumption the total value created would be $80 per ticket ($90 - $10).

Explanation:

Take note of the expressions;

1. "the original ticket holder would have been willing to sell each ticket for $10", and
2. "new buyer would have been willing to pay up to $90 for each ticket"

Following these assumptions, the broker captured value or profit from the transaction would be $80 per ticket sold to new buyer, since he bought the tickets for $10 each.

Remember, that another word for profit is  total value captured.