Netflix price increase hurts membership (200 words each) - make graphs where applicable - no generic answers please (9 marks) Netflix experienced some membership turbulence in 2016 as a price increase was phased in for its US subscribers. Over 2015-2016 in Q3, Netflix increased its standard subscription service price from $8.43 to $9.40. By contrast, percentage change in memberships during the same period dropped from 2.5% to 0.9%. Netflix was trying to implement price increases more slowly after a 2011 increase led to negative publicity and a customer backlash. In that case, Netflix separated its streaming and DVD services, and charged separately for both services. However, regardless of the implementation of the price increase, the higher monthly prices seem to have impacted the growth of membership among US subscribers. Based on the above information and knowledge of elastic of demand and market structures as learnt in lectures, answer the following questions: 1. What can you infer about the price elasticity of demand (PED) for Netflix services?