1. What is the optimal price of a bundle? (Format as $0.00)

2. What are the maximum profits of the firm? (Format as $0.00)

3. How much consumer surplus do consumers keep? (Format as $0.00)

4. At this price, what proportion of songs with positive value are not sold?

(Format as 0.00%)

5.

How much social value is not created? (Format as $0.00)

6. How much social value is not created? (Format as $0.00)

7. Total sales have increased, but does this mean total surplus kept by consumers has also

increased?

A. No. An even higher proportion of consumer surplus has been transferred to the

seller.

B. No. Consumers keep none of their surplus.

C. Yes. Because sales increase, the consumer surplus also increases.

D. Yes. Because the seller has captured less surplus.