Answer:
The correct answer is 1/4.
Explanation:
The value captured in the market is defined as the surplus earned in the economy. It is computed by subtracting the price of a product from the consumer's willingness to pay. Value captured in the market can be in the form of producer surplus or consumer surplus .
From the question we can deduce that total value captured in the market is $80. As the price of tickets is $10, consumers are willing to pay $90 for them. The value captured by the broker is $(50 - 30) = $20. This is because the broker bought the tickets for $30 each and sold them for $50 each.
The fraction of value captured by the broker = value captured by broker / total value captured in the market
= 20 / 80
= 1/4
