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Back to Assignment Attempts Score / 5 4 . Problems and Applications Q10 A Mend of yours is considering two movie streaming services. Provider A

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Back to Assignment Attempts Score / 5 4 . Problems and Applications Q10 A Mend 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 $1 per movie. Your friend's annual demand for movies is given by the equation Qn = 100 - 20P. where P is the price per movie. With Provider A, the cost of an extra movie is (3 With Provider B, the cost of an extra movie is 3 Given your friend's demand for movies and the cost of an extra movie with each provider, If your friend used Provider A, he would watch movies, and if he used Provider B, he would watch This means your friend would pay 5 for service with Provider A and ($ for service with Provider B. Use the following graph to draw raw 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. Price of Movies 80 120 180 160 180 250 Quartity of Movies Your friend would obtain Sin 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 Save & Continue Continue without saving 48"F

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