Ivan Loves Classical Music,and His Favorite Composer Wrote Nine Symphonies

question 6

Essay

Ivan loves classical music,and his favorite composer wrote nine symphonies.Ivan just happens to the 9 symphonies in exactly the order in which they were written.The table below shows the values that Ivan places on having these symphonies which he does not currently yet own:
Rank Total Personal Value
1_______________19
2_______________36
3_______________51
4_______________64
5_______________75
6_______________84
7_______________91
8_______________96
9_______________99
You can interpret the above to mean,for example,that Ivan values her favorite Symphony at $19,and that the total value of the first Symphony plus Symphony # 2 (his second favorite)is $36,etc.If the symphonies were sold individually on CDs - one symphony per disc - and the price per CD was $10.00,how many CDs would he buy?
[The above question was inspired by a question by Victor Tabush]

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Definitions:

Compensating Variation

A measure of the amount of money needed to compensate an individual for a change in welfare or utility, keeping utility constant.

Pairs

Two things that are designed to be used together or are similar in nature, often considered as a unit.

Demand Function

A mathematical equation that describes the quantity of a good or service demanded at various prices.

Consumer's Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.