If Disney+ to adjust its monthly subscription price from $7 to $9 per month, there will be reduction in the quantity demanded. This is illustrated in the graph below.
In economics, there is opposite relationship between the price of a commodity and the quantity demanded. When the price of a commodity rises, the quantity demanded decreases, and when the price falls, the quantity demanded increases.
For instance, if Disney+ were to adjust its monthly subscription price from $7 to $9 per month, we would expect a reduction in the quantity demanded.
This relationship is illustrated in the graph below.
The price of the commodity is on the Y axis, and the quantity demanded is on the X axis. If Disney+ were to increase its monthly subscription price from $7 (P) to $9 (P1) per month, it would lead to a decrease in the quantity demanded from Q to Q1. This decrease can be represented by a downward shift in the demand curve from D to D1 in the graph.