1. If the quantity demanded increases by 2 million for every $1 reduction in the subscription price,

a. How many initial subscribers would Disney+ have gotten at a price of $8.99

b. Is this a movement along the demand curve or a shift in demand?

2. Given the following data on gasoline supply and demand,

a. What is the equilibrium price?

b. Suppose the current price is $4. At this price, how much of a shortage or surplus exists?

Price per gallon $5.00 $4.00 $3.00 $2.00 $1.00 $5.00 $4.00 $3.00 $2.00 $1.00 Quantity demanded (gallons per day) Quantity supplied (gallons per day) Al 5 Firm A Betsy 2 Firm B Casey 4 Firm C | |-0 - N- I N W WW N I IN NWWN I NUA UIW I NOW- W I WAWA |- - NO - INWN- N Daisy 6 Firm D 6 Eddie 5 Firm E 4 Market total Market total\fMarket demand Market supply Equilibrium PRICE (per organs Pr Market shortage at p = 0 da QUANTITY forgana per year)