Spotify Won't Raise Its Streaming Prices Yet

As streaming services solidify their position as the dominant way that people listen to music, a common question swirling around has been whether subscription prices will go up. Over the past decade, Spotify has helped set a U.S. market standard of $9.99 per month for a premium music subscription; it hasn't adjusted that figure once. (Source: rollingstone.com, September 18, 2019)

Assume that the marginal social cost of streaming is zero.(This assumption means that the cost of operating a streaming servicedoesn't change if more people stream moresongs.)

If the market price rises to$15 permonth, is the market efficient orinefficient? Explain.

If the market price rises to$15 permonth, is the new price a competitive marketprice? Explain.