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The Market Supply Curve for Music Downloads Is Q =

Question 19

Multiple Choice

The market supply curve for music downloads is Q = 135(P-1) where Q is millions of downloads and P is the price in dollars per track. If the current price is $1.20 per download, what is the change in producer surplus if the price increases by $0.20 per track?


A) $5.4 million
B) $8.1 million
C) $10.8 million
D) $27 million

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