In 2018, Amazon raised the annual subscription fee for its Prime membership service, which provides free two-day shiping on many goods and other benefits, from $9 to$19. Piper Jafray, an ivestment bank, estimated tha before the price increase, Prime had 77 milon U.S subscribers.3 The bank speculated that the number of members would fall to about 62 million. If so, what is the arc elasticy of demand for a Prime membership?

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