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In the market for cable television, fewer people are subscribing to cable while the cost of providing cable television has increased. As a result, we can expect a(n):________

a. unknown change in the equilibrium price but a decrease in the equilibrium quantity of cable television.

b. unknown change in the equilibrium quantity but a decrease in the equilibrium price of cable television.

c. decrease in the equilibrium price and quantity of cable television.

d. increase in the equilibrium price and quantity of cable television.

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sebastiansierraocm

Answer:

c. decrease in the equilibrium price and quantity of cable television.

Explanation:

The quantity demanded of cable television is expected to fall because fewer people are subscribing to it, which means that demand for it is falling.

The equilibrium price is also expected to price because, even it costs for suppliers are going up, if demand is going down, suppliers have to lower their prices in order to meet a reduced customer base, and perhaps, lure new potential customers with lower prices.

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