Assignment #2 This assignment relates to the following Course Learning Requirements: CLRZ: Analyze how competitive markets allocate resources Obiective of Assignment: The objective of this assignment is to measure your ability to construct and use the Demand [Supply model to illustrate market dynamics. Pre-Assignment Instructions: Complete upeto and including module tour, including assigned readings and work. Assignment Tasks: 1) Demand and Supply Model a) Considerthe streaming service industry, and the various competitors {platforms} within it. These platforms allow consumers to stream movies and television series to their desired devices (i.e. TVs, tablets, PC etc}. A new streaming platform "CyberCinema" has done some research to create a demand schedule showing how many monthly subscriptions {the quantity demanded} the market (they and their competitors) can sell, at various price points. Page 1 of 3 ALGGNQUH.' COLLEGE Onllne Streaming Service Demand Schedule Scenario Monthly Price per Subscription (in dollars) Subscriptions (in millions} A $12.00 120 million B $14.00 80 million C $16.00 60 million D $18.00 50 million E $20.00 45 million I Plot the various scenarios ipoints} on a graph. I Clearly label the axis I Draw a GREEN line through the points to illustrate the trend in the demand. (2 points total} b} CyberCinema has determined that due to the high costs of computer servers required to provide a streaming service, each platform is only willing to sell a certain number of monthly subscriptions depending on the price point the consumers are willing to accept. Streaming Service Supply Schedule Scenario Monthly Price per Subscription (in dollars) Subscriptions (in millions} 1 12 45 2 14 50 3 16 60 4 18 SD 5 20 120 Page 2 of3 .\"l.G\\'.>.'\\lQlJ!."1I COLLEGE l Onllne I Plot the various scenarios (points} on the same graph as above. I Draw a RED line through the points to Illustrate the trend in the supply. (2 points total} c} Answerthe following I What is the equilibrium price? Label this point on the axis (2 points} I Explain how the curves and price would change if a new technology emerged, lowering the cost of the servers? {2 points) I Explain how the curves and price would change if Satellite and Television providers (substitute services to the streaming service providers) decreased their monthly subscription price? [2 points} Submission Procedures: I Vour assignment should be typed (mum or Ariel, 127point font} and submitted as a digital document (e.g., Word, PDF}. I Clearly label each response (1(a), 1(b}, etc.}. I For graphs, you may create it digitally, or hand draw and submit as a picture le or scan, please insure each is properly labelled and legible. I Submit your completed assignment by [Deadline]