Scarcity in Relation to Free Goods This is a basic economics question about scarcity in relation to free goods. The hypothetical question is that if iTunes decided to have free streaming for all their songs, would there still be scarcity for songs and would the incentives change?

I'm fairly new to these definitions and principles as it is economics 101. My understanding leads me to believe that songs remain scarce, as not all consumers have access to computer and as such to iTunes, and the incentives do change, as more people seeking free tunes will buy computers for the additional factor of the unlimited, free streaming.

Am I correct?
No, all would be the same. Except that its will monetize the android and iOS networks to make money that way.


Like youtube's model, this is how iTunes might operate