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Suppose the Demand Function for Cable TV Service Is Given

Question 3

Multiple Choice

Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25xPCTV + 0.0005xM + 0.3xPSTV,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.If consumers' income is $50,000 and the price of satellite TV service is $90,then the demand curve for cable TV would be given by


A) QCTV = 17 - 0.25xPCTV
B) QCTV = 67 - 0.25xPCTV
C) QCTV = 15 - 0.25xPCTV + 0.0005xM + 0.3xPSTV
D) QCTV = 13 - 0.25xPCTV

Correct Answer:

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