Suppose the price of music downloads falls.Which statement is not true?
A)buyers who were already downloading music are better off
B)some new customers will begin music downloads that had previously thought it was too expensive
C)the total consumer surplus in the market decreases
D)there will be an increase in the number of songs downloaded

Question

Quizplus · Accepted Answer

If the price of music downloads falls, it becomes more affordable for buyers and hence, existing buyers who were already downloading music would benefit from it. Also, the lower price might attract new customers who were hesitant to purchase before. This means that the number of songs downloaded would increase. However, the decrease in price would lead to an increase in consumer surplus (the difference between the price paid and the maximum amount the consumer was willing to pay), which means that statement C is not true.

Suppose the Price of Music Downloads Falls