the demand function for Netflixis ()(pD), where (p) is the price in dollars. For their “Basic” plan, Netflixcurrently charges ($9)per month, and it plans to raise the price to increase revenues: a) Find the Elasticity of Demand E(p)b) Determine whether Elastic, Inelastic, or Unit Elastic?c) Find the price that will Maximize Revenued) Will this strategy succeed?D(p) =9,000 · (802p)+

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a) Find the Elasticity of Demand E(p) b) Determine whether Elastic, Inelastic, or Unit Elastic? c) Find the price that will Maximize Revenue d) Will this strategy succeed? D(p) = 9,000 · (80 2p)+

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

the demand function for Netflixis ()(pD), where (p) is the price in dollars. For their “Basic” plan, Netflixcurrently charges ($9)per month, and it plans to raise the price to increase revenues:

a) Find the Elasticity of Demand E(p)
b) Determine whether Elastic, Inelastic, or Unit Elastic?
c) Find the price that will Maximize Revenue
d) Will this strategy succeed?
D(p) =
9,000 · (80
2p)+

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