Posted: January 15th, 2016
If the cost to download a song from the Internet onto an MP3 player falls from $0.99 to $0.50, then we would predict that producer surplus would in the market for MP3 players.
If the cost to download a song from the Internet onto an MP3 player falls from $0.99 to $0.50, then we would predict that producer surplus would in the market for MP3 players.
increase
decrease
not change
We cannot determine what producer surplus will do without information about consumer surplus.
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