Studying the conditions, it can be understood that the television set is a substitute good of the television repairmen. Meaning, if the cost of hiring repairmen goes up, the demand for television sets will rise (Piana 2005). Although this may seem counter-intuitive, it makes much more sense when the problem is closely observed. Firstly, we take only in consideration the two goods given: repairmen and television sets. It does not follow that television sets have an absolute need of repairmen for the industry to survive.
When a television set breaks, hiring a repairman is not the only option. The second option is the second good itself. People have the option to simply buy a new television set. It is true that the market of repairmen is dependent on the demand for television sets but the scenario asks for the opposite. The market of television sets does not rely on the demand of repairmen. Overall, we can say that the increase of repairmen cost per hour will increase the quantity of new television sets sold.
If the cost of television repairmen becomes too high, people will have the tendency to buy new sets instead of hiring repairmen. Of course, this scenario relies on the condition that other goods in the market are not considered. If we take into consideration goods that rival the television such as computers and what not, then the market for television sets may go down with the repairmen. However, the problem must be limited to the given and all other factors cannot be applied. Since television and repairmen are the only ones to be considered, then the prediction above is more or less acceptable.