Withcompetition increasing in for streaming services, especially with the growth of Amazon Prime Video and Hulu, the decline in membership growth could be a troubling sign.

Based on the above case, answer the following questions:

1.Is it possible to estimate price elasticity of demand for Netflix subscription services? If yes, estimate and comment on your results.

2.What do you expect to happen to Netflix's revenue due to price increase?

3.What do you expect to happen to Netflix's profit?

4.Why did Netflix stock got hammered after releasing the results?

5.Comment on your analysis and suggest what additional information would you require for more accurate analysis