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. -

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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