The introduction of satellite television systems would cause the demand curve for cable television to be
A) more elastic.
B) less elastic.
C) perfectly inelastic.
D) unchanged.

Question

Quizplus · Accepted Answer

The introduction of satellite television systems increases the number of substitutes available to consumers, making them more likely to switch away from cable television if its price increases. This makes the demand for cable television more elastic.

The Introduction of Satellite Television Systems Would Cause the Demand