What is the maximum annual amount you be willing to pay


Problem

You can rent a movie download from your cable provider for $4 per movie per day. If your demand curve for movie rentals is given by P = 20 - 2Q, where P is the rental price ($/day) and Q is the quantity demanded (movies per year), what is the maximum annual amount you be willing to pay for movie downloads? Show your calculation.

 

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Macroeconomics: What is the maximum annual amount you be willing to pay
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