When Amazon purchased the Whole Foods grocery chain  in 2017, it cut prices. But two years later, Amazon changed its strategy and began to raise prices.
a. In 2017, what did Amazon likely believe was true about the price elasticity of demand for groceries purchased at Whole Foods? Why might Amazon have changed that view by 2019?
b. Is Amazon likely to have the same effect on revenue from increasing the prices of groceries that it has from increasing the price of its Amazon Prime service? Briefly explain. Does it matter for your answer that many consumers view Whole Foods as an upscale grocery store that carries some products that supermarkets like Kroger, Albertson’s, or Publix do not carry? Briefly explain.