(Consider This)Suppose that a new band,"Balin and the Wolf Riders," tries to sell its music on the internet.Economists would expect:
A) all of those enjoying the music to pay for downloads and compensate the band for its costs.
B) some of those enjoying the music to "free ride" through illegal file sharing and digital piracy.
C) government to tax those attempting to download the band's music.
D) there to be no consumer surplus for those who download the band's music.

Question

Quizplus · Accepted Answer

Economists would expect that some individuals will download the band's music illegally without paying, which is known as free riding. This behavior is expected due to the low cost of digital piracy and the difficulty in policing it. It is unlikely that government will tax those attempting to download the band's music, and even if it did, it may not be successful in changing behavior. Additionally, there will likely still be some consumer surplus for those who download the band's music, especially if they value the music more than the cost of downloading it, even if they do not pay the full cost.

(Consider This)Suppose That a New Band,"Balin and the Wolf Riders