Suppose the Demand Function for Cable TV Service Is Given

question 13

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.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

---

Definitions:

Output

The total amount of goods or services produced by an individual, firm, or economy within a certain period.

Negative Externality

A cost imposed on a third party who is not involved in the production or consumption of a good or service.

Loud Music

High-decibel sound from musical instruments or audio systems, often considered disturbing or a nuisance in certain contexts.

Communicable Diseases

Illnesses caused by viruses, bacteria, or other microorganisms that can be transferred from person to person, directly or indirectly.