Ch. 5 Macro Reflection
1. The most notable sales practice based on elasticity that I can think of is the way that live sports are packaged in television products. Live sports are the only TV program to maintain some inelastic demand: one has a vested interest in seeing the actual broadcast and streaming options are limited. Television providers can charge a premium for that content and package it with other channels that one may or may not want. This sales practices seems to be working pretty well, but will probably lose its effectiveness as technology makes more convenient substitute products easier to access.
2. I didn’t realize it until the aplia homework, but I struggled with graphs of the long term v. short term changes in elasticity. I understand the theory, but it took me a while to wrap my head around the graphic representation. I also kept flipping Q and P in my equations, but I think I got that one figured out. It all seems pretty intuitive, but I start to second-guess myself when faced with some of the very abstract questions. Unit elasticity is a concept that seemed very simple, but the examples in the problem sets threw me.






