Economics class: Is the ‘subscription economy’ going to feel the Netflix effect?

This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.


  • Market Structures, Pricing and Output Points, Profit, Income elasticity, Regulation, Contestable Markets

Click to read the article below and then answer the questions:

Is the ‘subscription economy’ going to feel the Netflix effect?

  • Using the model of a firm in imperfect competition, show the effect of the falling demand for subscription services. Comment on how this affects price output and profit (pop)

  • Explain whether subscription services are income elastic or income inelastic

  • New Regulation will raise the costs further to firms in the subscription economy. Evaluate the impact on both consumers and firms

  • Netflix is one of a number of firms selling video content. Discuss how the falling number of subscribers affects contestability in this market

John Greenwood, Bromley High School for Girls 

Source link

About Daily Multan

Check Also

Mike Pence must testify before grand jury in Donald Trump probe, judge rules

Mike Pence must testify to a grand jury about conversations he had with Donald Trump …

Leave a Reply

Your email address will not be published. Required fields are marked *