Netflix is the largest online DVD rental service offering flat rate online streaming to customers in the United States. Currently, there are approximately 8 million subscribers. Suppose Netflix increases their average flat rate by 10 percent and observe their total revenues increase. Based on this information, the
A) price elasticity of demand for Netflix subscription is inelastic.
B) price elasticity of demand for Netflix subscription is elastic.
C) price elasticity of demand for Netflix subscription is unit elastic.
D) income elasticity of demand for Netflix subscription is elastic.
Correct Answer:
Verified
Q424: "The Department of Agriculture came out today
Q425: Of the following items, which has the
Q430: "The Department of Agriculture came out today
Q433: Apple, the consumer electronics giant, on Tuesday
Q435: Netflix is the largest online DVD rental
Q443: Can electric utility companies always raise their
Q449: If the owner of a local movie
Q456: Does the fact that the price elasticity
Q458: What happens to the price elasticity of
Q459: What effect does a price increase have
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents