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 quality of cable TV service increases, then consumer surplus

Question

Quizplus · Accepted Answer

If the quality of cable TV service increases, it implies that cable TV companies are trying to retain their customers by offering better quality at the same price, or at a lower price. This leads to an increase in consumer surplus, as customers now have more choices and better quality services to choose from at competitive prices. Therefore, the best choice is option A - increases.

Recall the Application About the Price Competition Between Satellite and Cable