Final answer:
The expansion of Netflix’s streaming offering for tablets increases the utility of tablets, which in turn leads to a rightward shift in the demand curve, increasing the quantity demanded at the existing price. Therefore, the demand curve for tablets will shift to the right, illustrating more people want tablets at the same price, increasing consumer surplus.
Step-by-step explanation:
When Netflix expands the number of recent movies available for streaming on tablets, this enhances the tablets' value proposition, making them more attractive to potential buyers. Consequently, if the price of a typical tablet is $300, we would expect more consumers to want tablets due to the expanded range of movies available for streaming.
This scenario results in an increase in the quantity demanded of tablets, which is represented by a shift to the right of the demand curve for tablets. This shift indicates that at the same price, more tablets are now desired by consumers compared to before the Netflix expansion.
Thus, the correct answer is: c. The demand curve for tablets will shift to the right. The concept of consumer surplus is relevant here as an increase in the demand for tablets due to an improved streaming service can increase the consumer surplus.
This happens because consumers are now getting more utility from the same priced tablet, which is represented by the area above the market price and below the demand curve. Since the actual market price hasn't changed, the added utility constitutes additional consumer surplus.