The FCC and congress are poised to enact new rules eliminating net neutrality an
ID: 1119855 • Letter: T
Question
The FCC and congress are poised to enact new rules eliminating net neutrality and permitting internet service providers to charge more for certain services and discounts for other services. This is likely to increase the cost for high-bandwidth services like video for companies that will be directly competing with services owned by the big telecom companies. If the increased cost to providers offering streaming video services similar to Netflix, Hulu, or Youtube shifts the supply curve without shifting the demand curve, what will happen to demand for small-business video?
A.Demand for small-business video will go up.
B.Demand for small-business video will stay the same.
C.Demand for small-business video will go down.
Explanation / Answer
Answer.) A.Demand for small-business video will go up.
eliminating net neutrality will affect internet customers . Many customers that enjoyed high-bandwidth services under net neutrality may not afford to use it under new policy of permitting internet service providers to charge more for certain services and discounts for other services. These customers will be forced to shift towards small-business video.
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