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In the Market for Cable Television, Fewer People Are Subscribing

Question 238

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 impact on the market is the same for both events, we can expect:


A) an increase in the equilibrium price and quantity of cable television.
B) an unknown change in the equilibrium price but a decrease in the equilibrium quantity of cable television.
C) a decrease in the equilibrium price and quantity of cable television.
D) no change in the equilibrium price but a decrease in the equilibrium quantity of cable television.

Correct Answer:

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