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Local Cable Companies Recently Increased the Price of Basic Services

question 14

True/False

Local cable companies recently increased the price of basic services.A news expert reporting on the increase stated,"While prices have increased 40%,the cable company reports only a 20% increase in revenue." This remark suggests that the demand for basic cable service is elastic.


Definitions:

Legal Constraints

Restrictions imposed by laws and regulations that dictate how a business can operate.

Profit Making

The primary goal of businesses, which involves generating revenue that exceeds the costs of operating, leading to financial gain.

Instrumental Value

The worth or usefulness of something based on its ability to help achieve an end or a goal.

U.S. Managers

Individuals in managerial positions within companies based in the United States, responsible for directing and overseeing the operations and strategic planning of their respective organizations.

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