Solved

Suppose the Price of Local Cable TV Service Increased From$16

Question 190

Multiple Choice

Suppose the price of local cable TV service increased from$16.20 to$19.80 and as a result the number of cable subscribers decreased from 224,000 to 176,000. Along this portion of the demand curve, using the midpoint method, price elasticity of demand is approximately


A) 0.83.
B) 1.2.
C) 1.
D) 8.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q185: You notice that whenever incomes rise by

Q186: The price elasticity of demand coefficient measures<br>A)buyer

Q188: The supply curve of antique reproductions is<br>A)relatively

Q189: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8602/.jpg" alt=" Refer to the

Q191: The supply of product X is elastic

Q192: If the elasticity coefficient of supply is

Q193: We use the midpoint formula in computing

Q194: If the coefficient of income elasticity of

Q195: Suppose that a 20 percent increase in

Q236: The price elasticity of demand for widgets