QUESTION 3 Instagrum, a popular and free photo-sharing application, has introduced a new premium subscription service called Instagrum Pro. Instagrum Pro will include some additional featuers, more photo filters and more editing options. The price of the subscription is $4.99 USD per month. Suppose Instagrum knows that at the current price, the point price elasticity of demand for the Instagrum Pro service is elastic. Select the item from the list provided to make the following statements true. - In order to increase revenue, Instagrum should the price of Instagrum Pro. item ✓ Instagrum Pro could be considered a/an because you can still post pictures on Instagrum (with fewer filters and editing options) without paying for Instagrum Pro A 1% increase in the price of Instagrum Pro would lead to a/an than 1% decrease in the number of paying subscribers. 1. budget 2. first increase then decrease 3. greater 4. first decrease then increase 5. necessary 6. increase 7. luxury 8. complementary 9. decrease 10. less

QUESTION 3 Instagrum, a popular and free photo-sharing application, has introduced a new premium subscription service called Instagrum Pro. Instagrum Pro will include some additional featuers, more photo filters and more editing options. The price of the subscription is $4.99 USD per month. Suppose Instagrum knows that at the current price, the point price elasticity of demand for the Instagrum Pro service is elastic. Select the item from the list provided to make the following statements true. - In order to increase revenue, Instagrum should the price of Instagrum Pro. item ✓ Instagrum Pro could be considered a/an because you can still post pictures on Instagrum (with fewer filters and editing options) without paying for Instagrum Pro A 1% increase in the price of Instagrum Pro would lead to a/an than 1% decrease in the number of paying subscribers. 1. budget 2. first increase then decrease 3. greater 4. first decrease then increase 5. necessary 6. increase 7. luxury 8. complementary 9. decrease 10. less

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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