Suppose Amazon lowers its Prime membership monthly fee from $12.99 to $9.99. The price elasticity of demand for Amazon membership subscription in this price range is estimated at -0.8. You predict that the number of Prime subscriptions will (increase/decrease) increase Aby (enter a number rounded to one digit after the decimal point, e.g., 22.2) A % and that Amazon's revenue A by (enter a number rounded to one A %. will (increase/decrease) digit after the decimal point, e.g., 9.9)

Suppose Amazon lowers its Prime membership monthly fee from $12.99 to $9.99. The price elasticity of demand for Amazon membership subscription in this price range is estimated at -0.8. You predict that the number of Prime subscriptions will (increase/decrease) increase Aby (enter a number rounded to one digit after the decimal point, e.g., 22.2) A % and that Amazon's revenue A by (enter a number rounded to one A %. will (increase/decrease) digit after the decimal point, e.g., 9.9)

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

Suppose Amazon lowers its Prime membership monthly fee from $12.99 to $9.99.
The price elasticity of demand for Amazon membership subscription in this price
range is estimated at -0.8. You predict that the number of Prime subscriptions will
(increase/decrease)
increase
Aby (enter a number rounded to one digit
after the decimal point, e.g., 22.2)
A/ % and that Amazon's revenue
will (increase/decrease)
A by (enter a number rounded to one
digit after the decimal point, e.g., 9.9)
A %.

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