Question: Figure 2.29 gives a time series plot of the average U.S. monthly pay cable TV rate (for premium services) for each year from 1975 to

Figure 2.29 gives a time series plot of the average U.S. monthly pay cable TV rate (for premium services) for each year from 1975 to 2005. Figure 2.29 also gives a time series plot of the average monthly non-cable (mostly satellite) TV rate (for premium services) for each year from 1994 to 2005.5 Satellite TV became a serious competitor to cable TV in the early 1990s. Does it appear that the emergence of satellite TV had an influence on cable TV rates? What happened after satellite TV became more established in the marketplace?

FIGURE 2.29 Time Series Plots for Exercise 2.59 $10.50 $10.00 $9.50 $9.00 S $8.50 $8.00 $7.50 $7.00 Monthly Pay Cable Rate Monthly Non-cable Rate

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