n 2009, Netflix raised its prices by 10% and the number of Netflix customers fell by nearly 20% (assuming everything else was held constant) In 2019, Netflix raised its prices by 10% and the number of Netflix customers fell by only 2% (assuming everything else was held constant) 1) The price increase was the same, but Netflix lost much less customers on a percentage basis in 2019 versus 2009. Using supply and demand concepts, what could explain the difference in the decrease in number of customers on a percentage basis that Netflix lost in 2019 vs. 2009? Explain why. 2) Did Netflix come out better with the 2009 price increase or the 2019 price increase? Using concepts that you have learned about supply and demand, explain why Netflix's revenues and profits increased or decreased in 2009 and in 2019 due to the 10% price increase.
In 2009, Netflix raised its prices by 10% and the number of Netflix customers fell by nearly 20% (assuming everything else was held constant)
In 2019, Netflix raised its prices by 10% and the number of Netflix customers fell by only 2% (assuming everything else was held constant)
1) The price increase was the same, but Netflix lost much less customers on a percentage basis in 2019 versus 2009. Using
2) Did Netflix come out better with the 2009 price increase or the 2019 price increase? Using concepts that you have learned about supply and demand, explain why Netflix's revenues and profits increased or decreased in 2009 and in 2019 due to the 10% price increase.
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