uge to answer two questions. FRONT PAGE Pricing Disney+ Disney decided it wanted to provide streaming services directly to customers, rather than renting its library of films and television shows to other streaming services like Netflix. But how successful would a streaming service be? In other words, what did the demand for a "Disney+" streaming service look like? Disney knew that the number of subscribers would depend not just on the attractiveness of the Disney archives, but also on the subscription price. After doing some market research, Disney decided to launch Disney+ at a price of $6.99 a month (or $69.99 per year). When Disney+ was launched on November 12, 2019, 10 million people signed up on the first day-a resounding success! Source: News reports, October-December 2019. Instructions: Round your response to one decimal place. If Netflix loses 4.5 million subscribers for every $1 reduction in the Disney+ subscription price, a. How many more subscribers would Netflix have lost if Disney+ were initially priced at $5.99 a month? million subscribers b. This is a (Click to select) 1

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