Question

Each drop box for each question has the same 8 options.

For all parts of this question, you are analyzing the market for Comcast Cable Service in your city. The price of Comcast cable service decreases. [Choose] [Choose] The Illinois minimum wage increases; Comcast must pay its employees a higher wage. The price of Comcast cable service increases. [Choose] 4 [Choose] 4 Average income in your city increases (Comcast Cable is considered a normal good). The price of Dish Network, a competing service, decreases. [Choose ] The price of cables Comcast uses (input) for cable service goes down. [Choose] Decrease in Quantity Supplied Decrease in Quantity Demanded Decrease in Demand Increase in Supply Increase in Demand Increase in Quantity Demanded Decrease in Supply Increase in Quantity Supplied þved at 12:08am Submi

Answer 1

1. When price of Comcast Cable service will decrease then this will result in increase in quantity demanded for Cable service. As per law of demand with the rise in price the Quantity Demanded for the product decreses and with fall in price Quantity Demanded for good Increases.

2.With the increase in minimum wages the Quantity Supplied for labor will increase. As more workers will be willing to work at high wages. The Quantity Demanded for workers will decrease because employers will be less wlling to employ workers at increased wages.

3. With the increase in the price of Comcast Cable Services, the Quantity Demanded for the Cable Services will decrease due to law of demand. At high prices the Quantity Demanded for the good reduces.

4. Since the Comcast cable service is a normal good, with the increase in income the demand for Comcast Cable Services will increase. Normal goods have a positive income elasticity of demand; as incomes rise, more goods are demanded at each price level and vice versa also holds true.

5. When the price of Dish networking will decreases, the Quantity Demanded for Dish networking will increase due to law of demand . As a result the demand for its substitute which is Comcast cable will reduce.

6. When the price of cables which are used as input by the Comcast Cable increases, then cost of production will increase. As a result the Supply of Comcast Cable will reduce or we can say that there is decrease in supply.