In 2009,Netflix Was Charging $16

question 85

Multiple Choice

In 2009,Netflix was charging $16.99 per month to rent three DVDs at a time.Although all subscribers under this plan pay the same rate,they do not receive the same quality of service.Subscribers who rent the fewest movies per month have the best chance of receiving the latest releases (for which there is usually a wait list) and will typically receive their DVDs faster.Based on the information above,what can you conclude about the price elasticity of demand for Netflix DVD rentals?

• A) Subscribers who rent many DVDs per month are likely to have a more elastic demand than subscribers who rent only a few DVDs per month.
• B) Subscribers who rent many DVDs per month are likely to have less elastic demand than subscribers who rent only a few DVDs per month.
• C) Subscribers who rent many DVDs per month are likely view DVDs as complements to movies at the theatre and therefore making this group wait longer for new releases will have a relatively small impact on demand for Netflix DVDs.
• D) Subscribers who rent many DVDs per month are likely view DVDs as substitutes to movies at the theatre and therefore making this group wait longer for new releases will have a relatively small impact on demand for Netflix DVDs.

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Definitions:

Pericardium

The fibrous sac that surrounds the heart, providing it with protection and the lubrication necessary for efficient movement.

Peritoneum

A membrane that lines the abdominal cavity and covers the abdominal organs.

Ventral

Relating to the body's front or anterior part, and the opposite of the dorsal side.

Internal Nares

Openings located inside the nasal cavity, also known as choanae, they connect the nose to the throat.