The drama club engaging in market exchange.
Step-by-step explanation:
The term market exchange refers to the act in which two or more people exchange good and services. In every exchange of goods or services an utility is produced. Utility refers to the difference in the value of the things that you involve in trading and the value of the thing that you have received as a result of trading.
In the example given, the local drama club involves in hosting free shows, poetry reading nights and sending volunteers to the local high school. As a result of this, it gains an increase in memberships and attendance at its performance. Thus, the local dram club involves itself engaging in market exchange.