In recent years, fewer households have been relying on traditional cable television or on broadcast television for entertainment. In 2022, for the first time, people in the United States spent more time watching streaming services than watching either traditional cable or broadcast television. Traditional cable television is sometimes called “pay-TV.” An article in the Wall Street Journal included the opinion of an investment analyst that “streaming services offer more convenience to users because they can watch shows and movies whenever they want, while traditional pay-TV is losing its appeal beyond live events such as sports.”

a. Is the decline in the number of people watching cable television likely the result of a movement along the demand curve for cable television or a shift in the demand curve? What information would you need to be confident in your answer?

b. In what ways are the causes of the decline in the number of people watching cable television similar to the causes of the decline in the number of people wearing hats? In what ways are they different?