Homework Answers
Relationship between price, total revenue and price elasticity of demand:
In case of inelastic demand: Price and total revenue moves in same direction.
In case of elastic demand: Price and total revenue moves in opposite direction.
In the given question, a 10% increase in price causes a increase in total revenue, both are moving in same direction. So, we can say that price elasticity of demand for Netflix subscription is inelastic.
So, the correct answer is an option (a).
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QUESTION 5 Netflix is the largest online streaming service. Currently, there are approximately 110 million subscribers....
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demand points A and B is approximately (0.01, 0.33, 3, 75.02). Suppose the price of bikes....points...
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75.02).
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inelastic, unit elastic) ...will lead to (a decrease, an increase,
and no change) in total revenue. In general, ....demand must be
(elastic, inelastic or unit elastic)
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Video streaming service Netflix is expanding rapidly around the globe. It is currently available in 50 countries with the goal of expanding to 200 countries by the end of 2016. The next countries to get Netflix are Italy, Spain, and Portugal. Similar to Netflix's other European offerings, service will be offered at a price of E7.49 per month, which converts to U.S. $8.34 during the time of expansion. Calculate the annual market sales potential for Spain in euros and U.S....
Netflix Price Increase Hurts Membership Netflix experienced some membership turbulence in 2016 as a price increase was phased in for its US subscribers. In May 2014, Netflix announced that the price of its standard subscription service would increase from $8 to $9. However, established customers were allowed to stay at the $7.99 price for two years. In 2015, Netflix increased the standard price to $9.99. As a result of the pricing plan and the deferred price increase, in May, 2016,...
demand points A and B is approximately (0.01, 0.33, 3,
75.02).
Suppose the price of bikes....points A and B is (elastic,
inelastic, unit elastic) ...will lead to (a decrease, an increase,
and no change) in total revenue. In general, ....demand must be
(elastic, inelastic or unit elastic)
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The Acmeville Metropolitan Bus Service currently charges $0.77 for an all-day ticket, and has an average of 623 riders a day The bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. Thev must therefore find a way to increase revenues The bus company is considering increasing the ticket price to S0.99. The marketing department's studies indicate this price increase would reduce usage to 359...
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