In the article linked to below from Slate magazine, Tim Harford, the author of the Undercover Economist, looks at how newspapers are approaching the pricing of online versions of their newspapers and articles. Why is it that all the articles we link to in these news items are free for you to read? How is this sustainable for the newspapers?
Why you didn’t pay to read this MSN Slate (27/11/07)
Questions
| 1. |
Explain the different pricing models that are available for newspapers when pricing the online versions of their papers. |
| 2. |
Discuss the extent to which a newspaper website is a complementary product to the printed version. |
| 3. |
Assess the extent to which competition between newspapers has driven the pricing strategies they have adopted for their websites. |
22nd November marks the day when Americans celebrate Thanksgiving Day. However, the cost of this celebration has increased by 11% in the last year according to figures from the American Farm Bureau Federation. One of the main causes of this is the rise in turkey prices but other factors were important as well.
Thanksgiving dinner cost ‘up 11%’ BBC News Online (16/11/07)
Questions
| 1. |
Using supply and demand analysis, illustrate the price changes for turkeys identified in the article. |
| 2. |
Consider possible factors that may have led to the price changes for turkeys identified in the article. |
| 3. |
Discuss the likely change in the quantity of turkeys demanded as a result of the price rise. |
| 4. |
What is the likely approximate value of the cross elasticity of demand for cranberry sauce with respect to the price of turkeys? |