Recall the Application about the price competition between satellite and cable TV services to answer the following question(s).
-Recall the Application. In most cases where satellite TV service is introduced in an area with cable TV service, if the price of cable TV decreases, then consumer surplus

Question

Quizplus · Accepted Answer

When the price of cable TV decreases, it becomes more affordable for consumers, thus increasing the consumer surplus because consumers are getting more value for a lower price.

Recall the Application About the Price Competition Between Satellite and Cable