Question 3

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter7: Demand And Supply
Section7.3: The Law Of Supply And The Supply Curve
Problem 4R
Question

When the price that Netflix charges rises from $540 to $750 a month, the
quantity demanded decreases from 400 million to 250 million subscriptions.
Calculate the price elasticity of demand for Netflix charges. Is the demand
elastic or inelastic? Would the demand for Netflix be more elastic or less elastic
than the demand for overall streaming services? Why? 

 

 

Question 3
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