Multiple Choice
Netflix is the largest online DVD rental service offering flat rate online streaming to customers in the United States. Currently, there are approximately 8 million subscribers. Suppose Netflix increases their average flat rate by 10 percent and observe their total revenues increase. Based on this information, the
A) price elasticity of demand for Netflix subscription is inelastic.
B) price elasticity of demand for Netflix subscription is elastic.
C) price elasticity of demand for Netflix subscription is unit elastic.
D) income elasticity of demand for Netflix subscription is elastic.
Correct Answer:
Verified
Correct Answer:
Verified
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