Satellite TV is a close substitute for cable TV. In the 1990s, small satellite TV units were developed that made it less costly for individual consumers to subscribe to satellite TV service. This caused the price elasticity of demand for cable TV service to:

A. shift to the left.
B. become more inelastic.
C. become more elastic.
D. become less elastic.


Answer: C

Economics

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Economics

If the relative price of one product rises and labor is mobile, then:

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Economics