Figure 15-11

In 2011, Verizon was granted permission to enter the market for cable TV in Upstate New York, ending the virtual monopoly that Time Warner Cable had in most local communities in the region. Figure 15-11 shows the cable television market in Upstate New York.
-Refer to Figure 15-11.Following the entry of Verizon, the subscription price falls from PM to PC.What is the increase in consumer surplus as a result of this change?

Question

Figure 15-11
  
In 2011, Verizon was granted permission to enter the market for cable TV in Upstate New York, ending the virtual monopoly that Time Warner Cable had in most local communities in the region. Figure 15-11 shows the cable television market in Upstate New York.
-Refer to Figure 15-11.Following the entry of Verizon, the subscription price falls from PM to PC.What is the increase in consumer surplus as a result of this change?

Quizplus · Accepted Answer

The Answer of Figure 15-11
  
In 2011, Verizon was granted permission to enter the market for cable TV in Upstate New York, ending the virtual monopoly that Time Warner Cable had in most local communities in the region. Figure 15-11 shows the cable television market in Upstate New York.
-Refer to Figure 15-11.Following the entry of Verizon, the subscription price falls from PM to PC.What is the increase in consumer surplus as a result of this change?

Figure 15-11 In 2011, Verizon Was Granted Permission to Enter the Market