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Market Surplus: Ye Olde Internet


It used to be the case that most providers of internet service would charge by the hour, rather than providing unlimited internet at a flat fee.

Kenny's demand for hours of internet is:

$$P = 99 - 3Q_D$$

He is choosing between two versions of internet service: Service A costs \$60 per month and provides unlimited internet. Service B doesn't have a monthly charge, but costs \$6 per hour.