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In the Market for Cable Television, Fewer People Are Subscribing

Question 124

Multiple Choice

In the market for cable television, fewer people are subscribing to cable while the cost of providing cable television has increased. As a result, since the drop in cable subscribers has had a bigger impact on the market, we can expect a(n)


A) increase in the equilibrium price and quantity of cable television.
B) unknown change in the equilibrium price but a decrease in the equilibrium quantity of cable television.
C) decrease in the equilibrium price and quantity of cable television.
D) unknown change in the equilibrium quantity but a decrease in the equilibrium price of cable television.

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