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Suppose the Price of Music Downloads Falls

Question 144

Essay

Suppose the price of music downloads falls.Explain what will happen to:
a.existing buyers who were already downloading music.
b.potential buyers who have not yet begun downloading music.
c.the consumer surplus in this market.
d.the number of downloads that will now occur.

Correct Answer:

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a.Exsting buyers will be better off beca...

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