Macro Economics-- Redbox Price Hike Could Dodge Netflix Outrage Essay

Macro Economics-- Redbox Price Hike Could stratagem Netflix Outrage - Essay ExampleBecause the price has increased, it is reasonable to expect that the quantity take ined will decrease. This is because the market exact will adjust to the increased prices by not purchasing the same amount of DVDs as before. However, if demand is high enough, then quantity will remain relatively the same. This is because a competitor, Netflix, raised its prices by fifty-fifty more60%. Even though consumers may not like the price hike, they may wee no other option but to continue using Redboxs services.I think that Redbox is doing the practiced thing by raising their prices because they need to make a profit. Because operating costs have risen, it is besides natural to pass on that increase to customers. Redbox needs to be aware that its customer base may fall due to this announcement. If so, Redbox needs to decrease its prices marginally so that market equilibrium can be