Question: Can you help with part 2? (d) (18 points) Julia discovered that her local Discount Club sells recordable CDs at a price of $10 for
Can you help with part 2?
(d) (18 points) Julia discovered that her local Discount Club sells recordable CDs at a price of $10 for the first packet of fifty and then the price drops to only $5 for all remaining packets of fifty purchased. She must also pay a one-time (non-refundable) up-front membership fee of $50 to join the Discount Club. Answer the following:
- (a) (8 points) How many packets of CDs will Julia buy
- (b) (5 points) What is her consumer surplus?
- (c) (3 points) Should she purchase from her local store or the Discount Club? Why?
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