Below is a discussion answer to the question"can you think of real-world examples of organizations raising prices not enough?
Did Netflix Raise Price Enough?
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All you are saying is correct. My observation is that Netflix has learned to take price hikes slowly. They benefited significantly in the short run due to inelastic demand (a higher price produced higher revenues and eventually raised their stock price). Since then, new competitors have come into the market. So, they need to take price hikes even slower. In fact, Netflix has been rolling out its price increases gradually since then but has been creating more sophisticated schemes of price hikes to keep the customer base intact. So, how would you estimate your own price elasticity for Netflix?