Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. All else equal, a $10 increase in the price of satellite TV will cause the quantity of cable TV demanded to:
A. decrease by 3,000 households.
B. increase by 3,000 households.
C. decrease by 5,000 households.
D. increase by 5,000 households.
B. increase by 3,000 households.
Economics
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In the Keynesian liquidity preference framework, an increase in the interest rate causes the demand curve for money to ________, everything else held constant
A) shift right B) shift left C) stay where it is D) invert
Economics
The Fed conducts open market operations with the primary goal of
A) affecting the federal funds rate. B) affecting the discount rate. C) stabilizing the foreign-exchange market. D) adjusting reserve requirements.
Economics