Essay
Use the graph to answer the following questions about music album downloads.
a. What is the equilibrium price of music album downloads before trade?
b. What is the equilibrium quantity of music album downloads before trade?
c. What is the price of music album downloads after trade is allowed?
d. What is the quantity of music album downloads exported after trade is allowed?
e. What is the amount of consumer surplus before trade?
f. What is the amount of consumer surplus after trade?
g. What is the amount of producer surplus before trade?
h. What is the amount of producer surplus after trade?
i. What is the amount of total surplus before trade?
j. What is the amount of total surplus after trade?
k. What is the change in total surplus because of trade?
Correct Answer:
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a. R12
b. 50
c. R15
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Correct Answer:
Verified
b. 50
c. R15
...
View Answer
Unlock this answer now
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