The following exercise is based on "More Than 25% of Consumers Willing to Pay More Than $10 a Month for $6.99 Disney +" by Daniel Frankel. e Price Demand $30.00 $25.00 8 $15.00 26 $7.50 56 $2.50 69 1. Based on information in the article, the table above shows demand for Disney+. Plot these points to represent the demand curve. e 2. The launch price of Disney+ is $6.99/month. Use the graph to calculate the monthly consumer surplus. e 3. Assuming the marginal cost of providing Disney+ is $0, calculate producer surplus e 4. How would consumer, producer, and total surplus change if Disney were to lower the price of Disney+ to $2. -
The following exercise is based on "More Than 25% of Consumers Willing to Pay More Than $10 a Month for $6.99 Disney +" by Daniel Frankel. e Price Demand $30.00 $25.00 8 $15.00 26 $7.50 56 $2.50 69 1. Based on information in the article, the table above shows demand for Disney+. Plot these points to represent the demand curve. e 2. The launch price of Disney+ is $6.99/month. Use the graph to calculate the monthly consumer surplus. e 3. Assuming the marginal cost of providing Disney+ is $0, calculate producer surplus e 4. How would consumer, producer, and total surplus change if Disney were to lower the price of Disney+ to $2. -
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I need answers, especially number 4.
![The following exercise is based on "More Than 25% of Consumers Willing to Pay More
Than $10 a Month for $6.99 Disney +" by Daniel Frankel. e
Price Demand
$30.00
2
$25.00
8
$15.00
26
$7.50
56
$2.50
69
1. Based on information in the article, the table above shows demand for Disney+. Plot
these points to represent the demand curve. -
2. The launch price of Disney+ is $6.99/month. Use the graph to calculate the monthly
consumer surplus.
3. Assuming the marginal cost of providing Disney+ is $0, calculate producer surplus
4. How would consumer, producer, and total surplus change if Disney were to lower the
price of Disney+ to $2. e](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb34fdb1f-56af-4e66-8389-ab21ab056ce7%2Fabad57cb-75d8-4792-8e21-302d74984bb2%2Ftiio28v_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following exercise is based on "More Than 25% of Consumers Willing to Pay More
Than $10 a Month for $6.99 Disney +" by Daniel Frankel. e
Price Demand
$30.00
2
$25.00
8
$15.00
26
$7.50
56
$2.50
69
1. Based on information in the article, the table above shows demand for Disney+. Plot
these points to represent the demand curve. -
2. The launch price of Disney+ is $6.99/month. Use the graph to calculate the monthly
consumer surplus.
3. Assuming the marginal cost of providing Disney+ is $0, calculate producer surplus
4. How would consumer, producer, and total surplus change if Disney were to lower the
price of Disney+ to $2. e
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