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Q.a - For Critical Thinking

Economics Today
Found in: Page 418

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Short Answer

Why does it make sense that there was a negative percentage change in the quantity of cable TV subscriptions demanded in response to an increase in the price of these subscriptions?

The coefficient of value versatility of interest is generally a negative number on account of the inverse connection between cost and the amount demanded.

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Step by Step Solution

Step 1: Given Information

Value flexibility or versatility of value alludes to the rate change popular for an item concerning the rate change in any of the elements influencing interest for that ware.

Step 2: Explanation

With an expansion in the cost of T.V. membership, the interest for the amount of link T.V. will diminish. This is because of the way that, individuals in light of expansion in cost will generally buy less link T.V. membership. It is expected that shoppers are objective in nature and they need to fulfil their needs with a given spending plan imperative.

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