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What Will Happen to the Equilibrium Price and Quantity of Landline

question 249

Multiple Choice

What will happen to the equilibrium price and quantity of landline phone services if new technologies lower the costs of providing such services and, at the same time, alternatives such as the Internet or smart phones have become more popular?


Definitions:

Self-Serving Bias

A cognitive bias that involves taking personal credit for success while blaming external factors for failures.

Bystander Effect

A social psychological phenomenon in which individuals are less likely to offer help to a victim when other people are present.

Actor-Observer Effect

The tendency to attribute one's own actions to external factors, while attributing others' actions to their personality.

Primacy Effect

The psychological phenomenon whereby the first items presented in a list are remembered more easily than those in the middle.

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