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Have you pulled the plug? With Netflix, Amazon Prime, CBS All access, people are leaving cable in large numbers. Netflix et al are substitutes for
Have you "pulled the plug?" With Netflix, Amazon Prime, CBS All access, people are leaving cable in large numbers. Netflix et al are substitutes for cable TV, and with a lower priced substitute we should see prices falling. In addition, Netflix is increased competition, and more competition shifts the supply curve rightward, which should also cause a drop in prices. And yet, cable prices aren't falling. Why not? Is supply and demand really failing? Discuss. Identify a good that you have purchased recently in which you believe that you received a large consumer surplus. Explain, using the economic definition of consumer surplus in your
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