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If the Cost to Download a Song from the Internet

Question 164

Multiple Choice

If the cost to download a song from the Internet falls from $0.99 to $0.50 along an upward-sloping supply curve,producer surplus in the market for MP3 players is likely to:


A) increase.
B) decrease.
C) not change.
D) We cannot determine what producer surplus will do without information about consumer surplus.

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