PASTEUR 1HOI Alan Wang's Portfolio x New Google Sites Adding X C One of the largest chang x MindTap - Cengage Lear( X in (16) Haokun Wang | Link X com/staticb/ui/evo/index.html?deploymentld=6100851810514868061715714733&elSBN-9780357723203&snapshotld=3320749&id=1725113165& CENGAGE | MINDTAP Chapter 07 Problems & Applications 21:21 10. Problems and Applications Q10 A friend of yours is considering two movie streaming services. Provider A charges $100 per year for the service regardless of the number of movies streamed. Provider B does not have a fixed service fee but instead charges $0.5 per movie. Your friend's annual demand for movies is given by the equation QD = 160 - 80P, where P is the price per movie. With Provider A, the cost of an extra movie is $100 . With Provider B, the cost of an extra movie is $0.5 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 ? 5.00 4.50 O 4.00 Demand 3.50SK Ed le X Alan Wang's Portfolio X New Google Sites Adding X C One of the largest chang X MindTap - Cengage L engage.com/staticb/ui/evo/index.html?deploymentld=6100851810514868061715714733&elSBN=9780357723203&snapsh CENGAGE |MINDTAP Chapter 07 Problems & Applications 5.00 20:55 4 50 Tools 4.00 Demand 3.50 3.00 Triangle 2.50 Price of Movies 2.00 1.50 1.00 0.50 0 20 40 60 80 100 120 140 160 180 200 Quantity 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? O Provider A Provider B