Consuming Music

This section will cover the supply and demand model and basic consumer theory, including budget constraints, indifference curves, utility maximization, and constrained optimization. It will be useful to apply economic theory to the changes in the music industry as they relate to goods that are perfect substitutes and perfect complements. Technology has eroded copyright protections and enforcement, and pirated music became a substitute for legal (purchased) music. Now streaming services are the predominant way to consume music.