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 increases, then consumer surplus

Question

Quizplus · Accepted Answer

If the price of cable TV increases, consumers may switch to satellite TV service, which may offer a lower price. This creates a competitive pressure on the cable TV provider to maintain their prices or reduce their prices, resulting in an increase in consumer surplus. Therefore, if the price of cable TV increases, consumer surplus may increase.

Recall the Application About the Price Competition Between Satellite and Cable