song. The digital music file is an artificially scarce good. Suppose the producer charges $2.50 per download. What is the resulting deadweight loss? $5 4.5 4 3.5 3 2.5 2. 1.5 1 0.5 0 download Demand 10 20 30 40 50 60 70 80 90 100 Downloads per hour

song. The digital music file is an artificially scarce good. Suppose the producer charges $2.50 per download. What is the resulting deadweight loss? $5 4.5 4 3.5 3 2.5 2. 1.5 1 0.5 0 download Demand 10 20 30 40 50 60 70 80 90 100 Downloads per hour

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The graph depicts the market for digital copies of a popular
song. The digital music file is an artificially scarce good.
Suppose the producer charges $2.50 per download. What is
the resulting deadweight loss?
Price per download
$5
4.5
4
3.5
3-
2.5
2
1.5
I
0.5
0
10 20 30
Demand
40 50 60 70 80 90 100
Downloads per hour

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