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Assignment - Macro Economics Essay
Review the article below - New Study Examines How Much Users Would Pay to Use the Most Popular Apps By Andrew Hutchinson.
Consider an app or subscription service that you regularly use. It may or may not be any one of the apps listed in the article. It can be an app that you currently pay for (e.g., Netflix, Navionics, etc.). Answer the following questions:
1. How much do you currently pay per month for this app?
2. What is the maximum you would be willing to pay per month for this app if you absolutely had to pay in order to use the app? What is your current consumer surplus?
3. What do you think would happen to producer surplus if the equilibrium price of the app/service (for all users and there was no way to get around it) increased to your maximum willingness to pay? Would it increase or decrease? Justify your answer.
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