(Answered) Question comcast deal won t lead to netflix price hike

Economics

Question: Comcast Deal Won' t Lead to Netflix Price Hike Under the deal, Netflix will buy Internet service from Comcast, rather than connect directly for free with some smaller ISPs like Cablevision as it does now.

a. How will Netflix's decision to buy more expensive Internet service influence Netflix's supply of online movie viewing?

b. Given your answer to part (a), explain why Netflix says it will not hike its price.

c. What can you say about the price elasticity of demand for Netflix online movie viewing?

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Microeconomics, Economics

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