3. Read the following article:Netflix Tested a Price Hike in Australia(FORTUNE) By TOM HUDDLESTON JR. May 15, 2017 (https://fortune.com/2017/05/15/netflix-price-hike-australia/)

Netflix customers in Australia could soon be facing steeper monthly charges.

The popular streaming service on Monday confirmed that it recently tested higher subscription prices for new customers in Australia. The companywhich has nearly 100 million global subscribers and expanded to Australia in 2015has reportedly tested raising prices for new subscribers by as much as three Australian dollars (AU).

Netflix's test resulted in some Australian customers seeing price increases for the streaming service's Basic plan (going from AU$8.99 to AU$9.99 per month), while Netflix's Standard plan increased AU$2to AU$13.99 and the Premium plan increased AU$3 to AU$17.99 per month, according to The Australian.

Netflix confirmed the tests, but emphasized that it has not yet formally announced any permanentprice increases. "We continuously test new things at Netflix and thesetests typically vary in length oftime," the company said in a statement. "In thiscase, we are testing slightly different price points to better understand how consumers value Netflix. Not everyone will see this test and we may not ever offer it generally."

Your task:Discuss why you think Netflix conducted this test and what you think they found from that test based on their later decisions.

Refer in particular to concepts from the Week 3 lecture topic, such as what price elasticity of demand is and how it is calculated and used, its relationship with revenue, and relevant determinants of price elasticity of demand.