Question
Suppose that Billie obtained a hi-fi system and turntable during the pandemic. Furthermore, suppose that, each month, Billie's demand for vinyl records is described by
Suppose that Billie obtained a hi-fi system and turntable during the pandemic. Furthermore, suppose that, each month, Billie's demand for vinyl records is described by Q = 20 - 0.5P (and their inverse demand curve is described by P = 40 - 2Q), where Q is quantity of new vinyl records per month and P is price per record. Given this demand curve, what is the most that Billie would be willing to pay for a subscription service where they must pay a fixed fee and can then obtain as many vinyl records as desired each month?
Which value below
$50
$100
$200
$300
$400
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