Was able to figure out b. but need help figuring out a. Pricing Disney+Disney decided it wanted to provide streaming services directly to customers, rather thanrenting its library of films and television shows to other streaming services like Netflix. Buthow successful would a streaming service be? In other words, what did the demand for a"Disney+" streaming service look like? Disney knew that the number of subscribers woulddepend not just on the attractiveness of the Disney archives, but also on the subscriptionprice. After doing some market research, Disney decided to launch Disney+ at a price of$6.99 a month (or $69.99 per year). When Disney+ was launched on November 12, 2019,10 million people signed up on the first day-a resounding success!Source: News reports, October-December 2019.Instructions: Round your response to one decimal place.If Netflix loses 7 million subscribers for every $1 reduction in the Disney+ subscription price,a. How many more subscribers would Netflix have lost if Disney+ were initially priced at $4.99 a month?million subscribersb. This is a movement along the demand curve

As per your request, I am providing you with the answer to part a. Actual Initial Price by Disney…

If Netflix loses 7 million subscribers for every $1 reduction in the Disney+ subscription price, a. How many more subscribers would Netflix have lost if Disney+ were initially priced at $4.99 a month? million subscribers

If Netflix loses 7 million subscribers for every $1 reduction in the Disney+ subscription price, a. How many more subscribers would Netflix have lost if Disney+ were initially priced at $4.99 a month? million subscribers

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

Was able to figure out b. but need help figuring out a.

Pricing Disney+
Disney decided it wanted to provide streaming services directly to customers, rather than
renting its library of films and television shows to other streaming services like Netflix. But
how successful would a streaming service be? In other words, what did the demand for a
"Disney+" streaming service look like? Disney knew that the number of subscribers would
depend not just on the attractiveness of the Disney archives, but also on the subscription
price. After doing some market research, Disney decided to launch Disney+ at a price of
$6.99 a month (or $69.99 per year). When Disney+ was launched on November 12, 2019,
10 million people signed up on the first day-a resounding success!
Source: News reports, October-December 2019.
Instructions: Round your response to one decimal place.
If Netflix loses 7 million subscribers for every $1 reduction in the Disney+ subscription price,
a. How many more subscribers would Netflix have lost if Disney+ were initially priced at $4.99 a month?
million subscribers
b. This is a movement along the demand curve

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