Question

Suppose Hulu increased the price of a streaming subscription. How does this affect the demand for Hulu subscriptions? What about the quantity demanded?

Answer 1

The demand for the product does not change with the change in its price. However due to the law of demand, a price change can bring change in the quantity demanded. In this case when Hulu increased the price of streaming subscription, this would reduce the quantity demanded following the law of demand where the price and quantity demanded are inversely related. But the demand for Hulu subscription which is a function of factors other than its own price, remains unchanged.