A friend of yours is considering two movie streaming services. Provider A charges $110 per year for the service regardless of the number of movies streamed. Provider B does not have a fixed service fee but instead charges $1 per movie. Your friend's annual demand for movies is given by the equation QD=10020PD=10020, where Pis the price per movie.

With Provider A, the cost of an extra movie is

. With Provider B, the cost of an extra movie is

.

Given your friend's demand for movies and the cost of an extra movie with each provider, if your friend used Provider A, he would watch

movies, and if he used Provider B, he would watch

movies.

This means your friend would pay

for service with Provider A and

for service with Provider B.

Use the following graph to draw your friend's demand curve for movies. Then use the green triangle to help you answer the questions that follow.Note: You will not be graded on any changes you make to the graph.

DemandTriangle0204060801001201401601802005.004.504.003.503.002.502.001.501.000.500Price of MoviesQuantity of Movies

Your friend would obtain

in consumer surplus with Provider A and

in consumer surplus with Provider B.

Given this information, which provider would you recommend that your friend choose?

Provider A

Provider B