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Suppose the Demand Function for Cable TV Service Is Given

Question 2

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.We can see that


A) Cable TV service is an inferior good
B) Cable TV service is a normal good
C) Cable TV service and satellite TV service are complements
D) Cable TV service and satellite TV service are unrelated to one another

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