Recall the Application About the Price Competition Between Satellite and Cable

question 454

Multiple Choice

Recall the Application about the price competition between satellite and cable TV services to answer the following question(s) .
-Recall the Application. In most cases where satellite TV service is introduced in an area with cable TV service, if the price of cable TV increases, then consumer surplus

• A) increases.
• B) decreases.
• C) drops to zero.
• D) becomes negative.

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