Question

If video streaming networks is the market and home acccess to internet is required for these services, what happens to supply, demand, price and quantity when the cost of home internet access increases?

Answer 1

• When the cost of the home internet access increases, the demand for it decreases as people defer from purchasing it due to the higher cost.
• To the fall in demand, the suppliers of home internet are forced to lower the prices and increase the supply to attract more customers.
• With the increase in supply, the quantity of home internet access also increases.
• Hence we can say that when the cost of home internet access increases, the demand decreases, price decreases, the supply and quantity increases.