What will MOST likely follow a decision by Netflix to raise its monthly subscription price? O a. Hulu's market demand curve will shift to the right, since Hulu is a substitute for Netflix, O b. Netflix's market demand curve will shift to the left in response to the higher price. Oc. Netflix's market demand curve will shift to the right, since subscribers assume the price hike will be used for original programming. Od. There will be a movement down Hulu's market demand curve, since Hulu is now relatively cheaper.
What will MOST likely follow a decision by Netflix to raise its monthly subscription price? O a. Hulu's market demand curve will shift to the right, since Hulu is a substitute for Netflix, O b. Netflix's market demand curve will shift to the left in response to the higher price. Oc. Netflix's market demand curve will shift to the right, since subscribers assume the price hike will be used for original programming. Od. There will be a movement down Hulu's market demand curve, since Hulu is now relatively cheaper.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:What will MOST likely follow a decision by Netflix to raise its monthly subscription price?
O a. Hulu's market demand curve will shift to the right, since Hulu is a substitute for Netflix.
O b.
Netflix's market demand curve will shift to the left in response to the higher price.
Oc. Netflix's market demand curve will shift to the right, since subscribers assume the price hike will be used for original programming.
Od. There will be a movement down Hulu's market demand curve, since Hulu is now relatively cheaper.
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