Harvey Rabbitt pays for monthly cable TV service. Last week the cable company informed Harvey that his monthly cable price would go down because the city council has granted approval for three new cable companies to service his area
How is the market for cable TV services affected by this?
A) There is a decrease in the quantity of cable TV service supplied.
B) There is a decrease in the demand for cable TV service.
C) There is a decrease in the supply of cable TV service.
D) There is an increase in the supply of cable TV service.
D
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Mister Jones was selling his house. The asking price was $220,000, and Jones decided he would take no less than $200,000. After some negotiation, Mister Smith purchased the house for $205,000. Jones' producer surplus is
A) $5,000. B) $15,000. C) $20,000. D) Not able to be calculated from the information given.
A change in demand cannot be caused by a change in
a. tastes b. population c. the prices of other goods d. expectations of future prices e. the price of the good itself