Market One: NFL Ticket Or Dish Network

Market One; Elastic Demand- As football season approaches, so does the commercials to gain viewers (subscribers). Whether it is DirectTV with its lucrative offers of NFL Ticket or Dish Network with its Redzone, both are elastic in nature because these fall into the understanding of luxuries or non-necessities. These companies have challenges, and as DirecTV Chief Executive Michael White has pointed out, “There’s a much bigger issue, which is the price elasticity challenge when you’re trying to raise prices when median household incomes are flat, particularly for those making less than $50,000 a year.”(DirecTV)
What I have just provided addresses the responsiveness, as our reading on page 415 points out, “Price elasticity of demand (Ep) The responsiveness of the quantity demanded of a commodity to changes in its price; defined as the percentage change in quantity demanded divided by the percentage change in price. To determine elasticity of demand it is important consider, availability of substitutes, Short-run versus long run, Percentage of income spent on the product.

Electricity then is a great example of inelastic goods. Electricity being the necessity of a good because if televisions go up in price consumers will not purchase them thus it reduces the demand. More importantly though, if electricity goes up during football season the consumer will have no course of action but to pay for it and yet maybe to prepare, they would had reduced their consumption outside of the