Price Hikes and Cable TV Revenue. Four yearsago, the cable television company in your area increased its price by 25

25 percent. As aresult, its total revenue increased. Lastyear, a new company started providing television service using satellite dishes. This year the cable company increased its price by 25

25 percent, but its total revenue fell. This is likely the result of which of thefollowing?

A.

Four yearsago, demand for television service was inelastic due to a lack of available substitutes.

B.

Demand facing an individual store is generally more elastic than demand facing the entire industry.

C.

Thisyear, demand for television service is elastic due to the presence of an available substitute.

D.

All of the above are correct.