Suppose the Demand Function for Cable TV Service Is Given

question 41

Multiple Choice

Suppose the demand function for cable TV service is given by Q_CTV = 15 - 0.25xP_CTV + 0.0005xM + 0.3xP_STV,where Q_CTV is the quantity of cable TV demanded (thousands of households) ,P_CTV is the price of cable TV,M is income and P_STV 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) Q_CTV = 17 - 0.25xP_CTV
• B) Q_CTV = 67 - 0.25xP_CTV
• C) Q_CTV = 15 - 0.25xP_CTV + 0.0005xM + 0.3xP_STV
• D) Q_CTV = 13 - 0.25xP_CTV

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Definitions:

Independent Variable

A variable that is manipulated or changed in an experiment to determine its effect on a dependent variable.

Dependent Variable

In an experimental setting, the variable that is being tested and measured, which is expected to change as a result of manipulations in the independent variable.

Independent Variable

In experimental and research settings, the variable that is manipulated or changed to observe its effects on the dependent variable.

Exercise

Physical activity that is planned, structured, repetitive, and aimed at improving or maintaining physical fitness and overall health.