Refer to the Table,which Shows the Number of MP3 Downloads

question 30

Multiple Choice

$$\begin{array} { | l | l | } \hline \text { Price } & \begin{array} { l } \text { Quantity } \\\text { Demanded }\end{array} \\\hline \$ 0 & 1,000 \\\hline \$ 1 & 400 \\\hline \$ 2 & 200 \\\hline \$ 3 & 100 \\\hline \$ 4 & 25 \\\hline\end{array}$$ Refer to the table,which shows the number of MP3 downloads demanded per month for the students at a certain university.Which of the following statements does not explain why the quantity demanded was not higher for a price of $0?

• A) There are only so many songs that people want to listen to.
• B) Downloading an MP3 takes time.
• C) MP3s take up space on a computer's hard drive.
• D) People would rather pay for their downloads.

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Definitions:

Opportunity Cost

The highest valued alternative that must be sacrificed as a result of choosing an option.

Economic Losses

The decrease in wealth or resources experienced by an individual, organization, or country, typically measured by cost incurred that are not offset by gains.

Value of Resources

The worth placed on natural, human, and capital assets based on their utility in producing goods and services.

Long Run

A period of time in economic analysis where all factors of production and costs are variable, allowing for full adjustment to change.