Multiple Choice
The nation's largest cable TV company tested the effect of a price reduction for premium movie channels. It lowered prices from $12 to $9.95 and found that the number of customers rose by almost 50 percent. What does this illustrate?
A) The supply curve for premium movie channels has shifted to the left.
B) The demand curve for the premium movie channels has shifted to the right.
C) The demand for premium movie channels is elastic in this price range.
D) The demand for premium movie channels is inelastic in this price range.
Correct Answer:
Verified
Correct Answer:
Verified
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