In 2018, Amazon raised the annual subscription fee for its Prime membership service, which provides free two-day shiping on many goods and other benefits, from $9 to$19. Piper Jafray, an ivestment bank, estimated tha before the price increase, Prime had 77 milon U.S subscribers.3 The bank speculated that the number of members would fall to about 62 million. If so, what is the arc elasticy of demand for a Prime membership?

In 2018, Amazon raised the annual subscription fee for its Prime membership service, which provides free two-day shiping on many goods and other benefits, from $9 to$19. Piper Jafray, an ivestment bank, estimated tha before the price increase, Prime had 77 milon U.S subscribers.3 The bank speculated that the number of members would fall to about 62 million. If so, what is the arc elasticy of demand for a Prime membership?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 10PA

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Similar questions

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