We all love to listen to music. There are many ways to listen; some you pay...

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We all love to listen to music. There are many ways to listen; some you pay for and some you don't. Some musicians make money and some do not. SoundCloud is trying to get more money from streaming music into musicians pockets. What does this all have to do with elasticity? Listen to the following radio reporting that aired on Marketplace on 3/15/2021. You can listen to the reporting or read the text of the report HERE. It only lasts 3:56. Towards the end of the show Andrew Leff makes a comment about what streaming platforms should do to make more money, "If platforms start charging more for music, he said, musicians would see more than just a little change." Presumably he means, make more money. Answer the following questions about Mr. Leff's comments. 1. Does Mr. Leff assume that music streaming is elastic or inelastic? 2. Explain your answer to 1 by using our rule of thumb for elastic and inelastic goods and the relationship to total revenue. 3. Do you think Mr Leff is correct? We all love to listen to music. There are many ways to listen; some you pay for and some you don't. Some musicians make money and some do not. SoundCloud is trying to get more money from streaming music into musicians pockets. What does this all have to do with elasticity? Listen to the following radio reporting that aired on Marketplace on 3/15/2021. You can listen to the reporting or read the text of the report HERE. It only lasts 3:56. Towards the end of the show Andrew Leff makes a comment about what streaming platforms should do to make more money, "If platforms start charging more for music, he said, musicians would see more than just a little change." Presumably he means, make more money. Answer the following questions about Mr. Leff's comments. 1. Does Mr. Leff assume that music streaming is elastic or inelastic? 2. Explain your answer to 1 by using our rule of thumb for elastic and inelastic goods and the relationship to total revenue. 3. Do you think Mr Leff is correct?

Answer rating: 100% (QA)

1 Mr Leff assumes that music streaming is elastic 2 Mr Leffs statement suggests that he believes inc... View the full answer