Multiple Choice
The nation's largest cable TV company tested the effect of a price reduction for premium movie channels. It increased prices from $9.95 to $12 and found virtually no change in the number of customers. What does this illustrate?
A) The demand curve for the premium movie channels has shifted to the right.
B) The demand for premium movie channels is very elastic in this price range.
C) The supply curve for premium movie channels has shifted to the left.
D) The demand for premium movie channels is very inelastic in this price range.
Correct Answer:
Verified
Correct Answer:
Verified
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