Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 5 - Elasticity: A Measure of Responsiveness - Exercises - 5.2 Using Price Elasticity - Page 122: 2.17

Answer

The results changed because the price elasticity changed.

Work Step by Step

The first time the cable company raised its prices there was no substitute good in the market, so elasticity was low. Elasticity increased when satellite was introduced as an alternative.
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