Eenwriters negotiate a new agreement with movie producers stipulating eceive 10% of the revenue from every...

a) If screen writer demands a share in rentals, then cost of renting a move will increase. This will shift the supply curve to left, because now it's more costly to supply movie rentals in market. Consumer surplus falls. Hence, this negotiation would be opposed by consumers.

consumer surplus falls by area b+c

b) As cost of renting a movie increases, more consumers shift to on-demand movies, so demand for on-demand movies will rise. This increases the producer surplus in that industry.

So, writers agreement will be popular with cable companies.

producer surplus increase by area b+c

c)AS more consumers are demanding less of movie rentals because of Netflix and Prime, market for movie rentals will shrink. producer surplus in movie rental market will fall. Companies will have less consumer base and Hollywood screenwriters will also suffer due to fall in demand of their products:

Producer surplus falls by shaded area. it is left with only d amount of surplus due to fall in demand