Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV,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.All else equal,a $10 increase in the price of satellite TV will cause the quantity of cable TV demanded to:
A) decrease by 3,000 households.
B) increase by 3,000 households.
C) decrease by 5,000 households.
D) increase by 5,000 households.
Correct Answer:
Verified
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