Figure 13.7

Assume Shaw Cable has a monopoly to provide cable TV in Vancouver. Figure 13.7 shows the cable television market in Vancouver.
-Refer to Figure 13.7.Following the entry of Telus, the subscription price falls from PM to PC.What is the increase in consumer surplus as a result of this change?
A)the area A + B + C
B)the area B + C
C)the area D + F
D)the area B + C + D

Question

Figure 13.7
  
Assume Shaw Cable has a monopoly to provide cable TV in Vancouver. Figure 13.7 shows the cable television market in Vancouver.
-Refer to Figure 13.7.Following the entry of Telus, the subscription price falls from PM to PC.What is the increase in consumer surplus as a result of this change?
A)the area A + B + C 
B)the area B + C 
C)the area D + F 
D)the area B + C + D

Quizplus · Accepted Answer

The Answer of Figure 13.7
  
Assume Shaw Cable has a monopoly to provide cable TV in Vancouver. Figure 13.7 shows the cable television market in Vancouver.
-Refer to Figure 13.7.Following the entry of Telus, the subscription price falls from PM to PC.What is the increase in consumer surplus as a result of this change?
A)the area A + B + C 
B)the area B + C 
C)the area D + F 
D)the area B + C + D

Figure 13.7 Assume Shaw Cable Has a Monopoly to Provide Cable TV