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:
Verified
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