Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV,where QCTV is the quantity of cable TV demanded (thousands of households) ,PCTV is the price of cable TV,M is income and PSTV is the price of satellite TV service.We can see that:
A) cable TV and satellite TV are substitutes.
B) cable TV and satellite TV are complements.
C) satellite TV is a normal good.
D) satellite TV is an inferior good.
Correct Answer:
Verified
Q14: Two products are substitutes if:
A) an increase
Q15: An increase in the price of milk
Q16: A change in demand of a good
Q17: An increase in the price of a
Q18: The relationship that shows how much buyers
Q20: If an increase in the price of
Q21: Refer to Figure 2.3.At a price of
Q22: Consider the relationship given by QCars =
Q23: Consider the relationship given by QCars =
Q24: Which economist is credited with originating the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents