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Posted: March 16th, 2022

Economics Help

Q1 What is the average willingness to pay for a single song? (Format as $0.00) _____

Q2 What is the optimal price of a song to generate the most profit? (Format as $0.00) _____

Q3 How many songs sell at this price? (Format as number) _____

Q4 At this price, what are the maximum profits of the firm? (Format as $0.00) _____

Q5At this price, what proportion of songs with positive value are not sold? (Format as 0.00%) _____

Q6For all songs that are sold, how much consumer surplus do consumers keep? (Format as $0.00) _____

Q7How much social value is not created? This is also called ‘value of unsold items’ or the ‘missing surpluses. (Uncaptured consumer surplus or Total WTP of those consumers who are ready to pay a non-negative price) (Format as $0.00) _____

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