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Suppose the diagrams above represent an Internet firm that offers social media services. The graph on the left represents the demand for users of the

Suppose the diagrams above represent an Internet firm that offers social media services. The graph on the left represents the demand for users of the social networking; the graph on the right represents the demand for advertising space from would-be advertisers on the platform. Currently the platform does not charge for social media services (P = 0), and the demand for advertising space is shown by DA0 (equilibrium at point Y). If the firm begins charging social media users P1, which of the following outcomes is most likely? Multiple Choice The quantity of social media users will drop to Q2 if demand is more elastic, and the demand for advertising will rise to DA2. The quantity of social media users will drop to Q1 if demand is more elastic, and the demand for advertising will rise to DA2. The quantity of social media users will drop to Q1 if demand is more inelastic, and the demand for advertising will drop to DA1. The quantity of social media users will drop to Q2 if demand is more inelastic, and the demand for advertising will drop to DA1

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