Disney Plus Is Finally Coming To Canada This Fall And It's Way Cheaper Than Netflix Step aside, Netflix, Disney Plus Canada is about to arrive. Canadians are sure to love Disney Plus not only for its programming variety, but also because it's cheap. Canadians will pay $8.99 a month to gain complete access to the service's shows and movies. By comparison, Netflix Cana- da's basic plan is $9.99 a month. Source: narcity.com, November 11, 2019

a. How will Disney's entry into the online video service market influence the demand for Netflix's service?

b. Given your answer to part (a), explain why Netflix might lower its price.

e. What can you say about the effect of Disney's entry on the price clasticity of demand for Netflix online movie viewing?