Janis enjoys loud music and is willing to pay $9 for the first song and $1 less for each succeeding song ($8 first, $7 second, etc). 1. How many songs will Janis play if the price of songs is $0 2. Suppose government imposes noise pollution tax of $4 per song. How many songs will Janis listen to now? 3. What is the loss in consumer surplus to Janis of the tax?
Janis enjoys loud music and is willing to pay $9 for the first song and $1 less for each succeeding song ($8 first, $7 second, etc).
1. How many songs will Janis play if the
2. Suppose government imposes noise pollution tax of $4 per song. How many songs will Janis listen to now?
3. What is the loss in
4. Suppose Janus could soundproof her room and eliminate the responsibility to pay the tax. If the cost of soundproofing is $30, is it worthwhile?
Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for you. To get remaining sub-part solved please repost the complete question and mention the sub-parts to be solved.
The difference between the utmost price a consumer is prepared to pay and the actual amount they pay for a commodity is known as the consumer surplus. On the graph, it is shown as the area below the demand curve and above the equilibrium price. The overall surplus in the market is comprised of both consumer and production excess. The region between the supply and demand curves is used to represent them collectively.
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