Netflix officials expected to lose about 600,000 of their roughly 24.6 million US subscribers when the price rose from about $10 to $16 a month. Using the same midpoint calculation , about what price elasticity of demand did officials expect?

1. The expected percentage change in quantity is about negative 600,000 subscribers divided by the average of 24 million and 24.6 million, which is about 24.3 million. 2. That works out to roughly negative 2.5 percent. 3. The expected percentage change in price is the $6 increase divided by the average of $10 and $16, which is $13, or about 46 percent. 4. Dividing the percentage quantity change by the percentage price change gives about 0.05. 5. An elasticity this close to zero is highly inelastic, meaning officials expected subscribers to barely react to the price increase. 6. Values like 1.47 or 3.53 belong to entirely different worked examples, not this Netflix estimate. _Source: OpenStax Principles of Microeconomics for AP Courses (CC BY 4.0), Ch 5 "Elasticity", section 5.4 | Elasticity in Areas Other Than Price_