Supply And Demand (361 words) Essay

Supply And Demand
On January 30, millions of televisions will be tuned in to the American
Broadcast Company’s live coverage of the Super Bowl. The three hour-plus event
draws as many as 130 million viewers at one time. According to NFL Research,
sixty eight percent of Super Bowl viewers say they pay attention to the
commercials and fifty two percent said they discussed the ads the next day. With
so many people watching the event, businesses see the Super Bowl as a golden
opportunity to lure in profits by utilizing the commercial air time available.

Due to the unlimited wants and limited resources, an economic condition called
scarcity results. Another economic principle, called investment, is exemplified
in this article. Scarcity is a condition that exists because society has
unlimited wants and needs, but there are limited resources for their
satisfaction. During the three hour-plus football game, there will be
opportunities for large businesses (and even some small businesses who have
gambled on this form of advertising) to display their product or service to over
a hundred million people. At an even greater expense, some companies are
sponsoring pre-game, half-time, and post-game shows. Why does it cost so much
money? Commercials during the Super Bowl are very powerful means of advertising.

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Companies can appeal to a larger audience by advertising during an event that is
widely watched among all different groups. The commercials are also quite
expensive because of the limited quantity. Advertising during the Super Bowl is
a very smart investment. Investment is defined by the sacrifice of current
benefits to pursue an activity with expectations of greater future benefits or
rewards. Does this apply to the Super Bowl? Yes. Companies will dish out
millions of dollars for 30-second blocks of air time. Some companies may even
purchase more than that. The short term result is a loss of millions. That money
invested in advertising, however, should return much more than that which was
invested. The commercial air time during the Super Bowl is such a valuable
commodity, that although it costs millions of dollars, those who invest in this
form of advertising believe they will make a much greater profit in return. 380
Catherine Valenti, (January 16,2000), War of the Web Sites,,


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