The Following Is Dave's Demand Schedule for Music Downloads If a Firm Is Selling Downloads at $1

question 30

Essay

The following is Dave's demand schedule for music downloads:
$\begin{array} { | l | l | } \hline \text { Quantity } & \text { Price } \\\hline 1 & 2.50 \\\hline 2 & 2.00 \\\hline 3 & 1.50 \\\hline 4 & 1.00 \\\hline 5 & 0.50 \\\hline\end{array}$
If a firm is selling downloads at $1.00 and then Dave obtains a promotional code that allows him to download for $0.50 each, what is the gain in consumer surplus to Dave?

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Definitions:

Auctions Reserve

The minimum price set by the seller that must be met for the sale to occur during an auction.

Auctions Without Reserve

Auctions where the item for sale will be sold to the highest bidder regardless of the bid amount, with no minimum selling price.

Implied-In-Law Contract

An obligation created by law for equity and fairness, even though no actual agreement was made by the parties.

Quasi-Contract

An obligation imposed by law in the absence of a contract to prevent unjust enrichment, where one party receives a benefit at the expense of another without a formal agreement.