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Part A: Consider the book subscription service industry, and the various competitors within it. These services allow consumers to download books to read on

May 5, 2024

Part A: Consider the book subscription service industry, and the various competitors within it. These services allow consumers to download books to read on electronic readers, phones, tablets, laptops, computers, etc.

An ebook platform called “Binar Books” has done some research to create a demand schedule showing how many monthly subscriptions (the quantity demanded) the market (they and their competitors) can sell, at various price points.

Subscription Service Demand Schedule

Scenario Monthly Price per Subscription (in dollars) Subscriptions (in millions)

A $10.00 100

B $12.00 60

C $14.00 40

D $16.00 30

E $18.00 25

§ Plot the various scenarios (points) on a graph.

§ Clearly label the axis

§ Draw a Blue line through the points to illustrate the trend in the demand.

(2 points total)

Part B: Binary Books has determined that due to the high costs of computer servers required to provide a subscription service, each service is only willing to sell a certain number of monthly subscriptions depending on the price point the consumers are willing to

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