Satellite TV is a close substitute for cable TV. In the 1990's, small satellite TV units were developed that made it less costly for individual consumers to subscribe to satellite TV service. This caused the price elasticity of demand for cable TV service to:
A)become more inelastic.
B)become less elastic.
C)become more elastic.
D)shift to the left.

Question

Quizplus · Accepted Answer

Goods with more substitutes have greater price elasticity because consumers can readily switch to or away from them if their price changes.

Satellite TV Is a Close Substitute for Cable TV