Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Malakai Nicholson 45 965181 Post 1 Disney has set an extra price on top of Disnev+ subscription fee to stream Mulan. This can be done

image text in transcribed
Malakai Nicholson 45 965181 Post 1 Disney has set an extra price on top of Disnev+ subscription fee to stream Mulan. This can be done as the demand to watch Mulan is a differentiated experience as it can't be seen anywhere else. This price elasticity of demand indicates how an increase in quality like the new movie Mulan in reaction to changes in price like the $35 to watch it. This is separated into elastic and inelastic. Determined from the equation price elasticity = IStylehange in quality; ISit-change in price. If it is above 1 it is elastic, below'l it is inelastic. I believe the price elasticity for Mulan would be inelastic as the demand wouldn't be as great as the $35 price increase. This demand will decrease because of illegal movie piracy and expensive price. You can re-watch and multiple people can watch but you still have to pay the subscription fee. 53 words

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Wisdom Of Crowds

Authors: James Surowiecki

1st Edition

0385721706, 9780385721707

More Books

Students also viewed these Economics questions