Recent Research Suggests That If Apple Switched from Uniform Pricing

question 121

Multiple Choice

Recent research suggests that if Apple switched from uniform pricing of its iTunes to two-part pricing,

• A) total welfare would increase, but consumer surplus would decrease.
• B) total welfare and consumer surplus would increase.
• C) total welfare would decrease, but consumers surplus would increase.
• D) total welfare and consumer surplus would decrease.

---

Definitions:

Estate Taxes

Taxes levied on an individual's estate or the total value of a deceased person's money and property, payable to the government before distribution to heirs.

Corporate Income Tax

A tax levied on the net income (accounting profit) of corporations.

Property Taxes

Levies on property that owners are required to pay, usually based on the value of the property.

Sales

The transactions where goods or services are exchanged for money or considerations.