Thursday, March 13, 2008


Cable TV Price Inflation

People are concerned about rising prices. Food, fuel and cable TV. Food and fuel are relatively new in the inflation game. Cable TV prices have been outpacing inflation for what seems like forever. You will find a New York Times article here about cable price inflation from nearly 20 years ago.

Several years ago it was reported here that "The average cable bill rose 5.6 percent in 2005 — to $43.04."

Question #1

At what price would you cancel your pay TV service [$50, $100, $200, $400 per month]?

Question #2:

How long can the price of a product or service increase before revenue decreases by either substitution or ending use of the product or service?

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