Explain what will happen to the equilibrium price and quantity of satellite TV service if the wages of the workers who provide the satellite TV service increase while at the same time the price of cable television service (a substitute for satellite
TV service) also increases.
The wage increases will cause supply to decrease and increases in the price of cable television service will cause demand for satellite TV service to increase. Equilibrium price will definitely increase. Equilibrium quantity will depend on whether the decrease in supply or the increase in demand is larger. If the supply decrease is larger than the demand increase, equilibrium quantity will decrease. If the demand increase is larger than the supply decrease, equilibrium quantity will increase.
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The government sector balance equals
A) net taxes plus government expenditures. B) saving plus investment. C) government expenditures plus investment. D) net taxes minus government expenditures. E) saving minus investment.
A group of stocks of individual firms that are placed into one investment pool by an investment company is commonly known as a:
a. pooled stock venue. b. stock clump. c. stock agreement. d. mutual fund. e. maximal diversified investment (MDI).