If the Price of Wireless Phone Service Decreases and the Demand

question 142

Multiple Choice

If the price of wireless phone service decreases and the demand for wired phone services decreases, then wired and wireless phone services are

• A) substitutes.
• B) complements.
• C) inferior goods.
• D) elastic goods.

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Definitions:

Compounded Monthly

Compounded monthly refers to the process of calculating interest where the interest earned each month is added to the principal, and the next month's interest is calculated on the new total.

College Tuition

The fee that students pay to cover the cost of instruction at a college or university.

Account

A record summarizing the financial transactions related to a particular aspect of a business's financial activities.

Compounded Annually

A method of calculating interest where the interest earned each year is added to the principal, so that the balance doesn't merely grow, it grows at an increasing rate.