Question: Solve clearly 2. The demand for an innovative new software is characterized by the following demand curve: QD = 500 - P where quantities (Qp)

Solve clearly

Solve clearly 2. The demand for an innovative new software is characterized

2. The demand for an innovative new software is characterized by the following demand curve: QD = 500 - P where quantities (Qp) are measured in thousands of units, and P is the price. Imagine that the inventor obtains a patent and charges $100 for each copy of the software sold. Assume that the marginal cost of producing any copies after the first copy is zero. (a) Draw a well-labeled graph showing the demand curve and the equilibrium number of copies of the software sold. (b) Calculate the consumer surplus and label this area on your graph from part (a). (c) Calculate the deadweight loss and label this area on your graph from part (a). (d) What can the inventor do to eliminate the deadweight loss

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