Julia is an amateur singer who wants to make her own music compact discs (CDs) and send copies to recording companies. A local store sells recordable CDs at a price of $10 for a packet of fifty. Julia's demand for recordable CDs is: Q = 12 0.4P, or and inverse demand of P = 30 2.5Q, where Q = number of packets of fifty CDs per year, and P = price per packet, in dollars. (Note: Julia's demand curve remains the same for this entire problem, which is what you should always assume for any multi-part problem unless stated otherwise.)

Julia discovered that her local Discount Club sells recordable CDs at a price of $10 for the first packet of fifty and then the price drops to only $5 for all remaining packets of fifty purchased. She must also pay a one-time (non-refundable) up-front membership fee of $50 to join the Discount Club. Answer the following:

How many packets of CDs will Julia buy

What is her consumer surplus?

Should she purchase from her local store or the Discount Club? Why?