Question
Read the following article from Yahoo Finance titled, Most Netflix Users Would Pay a Lot More for Their Subscription, Survey Shows Questions on the article:
Read the following article from Yahoo Finance titled, "Most Netflix Users Would Pay a Lot More for Their Subscription, Survey Shows"
Questions on the article:
- Based on this survey, suppose Netflix decided to double the price of its service from $8 to $16.As a result, the number of Netflix subscribers falls from 60 million to 40 million. Use the mid-point formula to calculate the price elasticity of demand for Netflix. Type in both the formula (with the numbers used) and your answer in your response.
- Based on your calculation; is Netflix elastic, inelastic, or unit elastic?Explain your answer.
- Would Netflix generate more revenue if they made this price change? Explain your answer.
here's a link to the yahoo article :)
https://finance.yahoo.com/news/netflix-users-pay-lot-subscription-survey-shows-151446485.html?guccounter=1
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Rediscovering Sustainability Economics Of The Finite Earth
Authors: ARG Heesterman
1st Edition
1317069846, 9781317069843
