Question

Is there an inverse relationship between the price of cable TV and the number of subscriptions that people purchase?subscriptions Explain

Short answer

Yes.

Step-by-step solution

Step1. Introduction

Law of Demand states that there exists an inverse relationship between quantity demanded and price of the good, i.e. as the prices increase, quantity demanded falls and vice versa.

Step2. Explanation

As the price of subscription increase, it becomes costly for the people to purchase the subscription, and hence they will demand less. At the same time, when prices fall, subscriptions increases.

Hence, we can say, there exists an inverse, negative, relationship between the two.