Suppose the Price of Local Cable TV Service Increased from $16.20

question 32

Multiple Choice

Suppose the price of local cable TV service increased from $16.20 to $19.80 and as a result the number of cable subscribers decreased from 224,000 to 176,000.Along this portion of the demand curve, price elasticity of demand is

• A)0.8.
• B)1.2.
• C)1.6.
• D)8.0.

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