Sunday, October 14, 2007

Unit 1: Radiohead's album: A case of no consumer surplus?

This BBC article explains how radiohead are charging for their latest album as a download

http://news.bbc.co.uk/1/hi/entertainment/7037194.stm

a) Explain the concept of consumer surplus
b) Explain the method Radiohead are using to price their album
c) Comment on whether this means there is no consumer surlus in this market

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