24 Price Gouging at Wimbledon Wimbledon on “People’s Sunday” are in uproar after touts snapped up tickets, only to offer seats on resale at up to eight times the face value. Repeated downpours had delayed play last week, forcing the All England Lawn Tennis Club to move matches to the middle Sunday for only the fourth time in the event’s 139-year history. About 22,000 new tickets were made available yesterday afternoon and sold out within 27 minutes.

Source: Sunday Times, 3 July 2016 a Did Wimbledon sell the 22,000 new tickets for the market equilibrium price?

b If touts were prevented from buying and selling tickets, would the outcome be efficient? Explain and illustrate your answer with a graph.

c With touts selling tickets for eight times the price they paid for them, was the outcome efficient? Explain and illustrate your answer with a graph.