Scenario 5-4 ​

question 53

Short Answer

Scenario 5-4
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Consider the markets for mobile and landline telephone service. Suppose that when the average income of residents of Plainville is $55,000 per year, the quantity demanded of landline telephone service is 12,500 and the quantity demanded of mobile service is 28,000. Suppose that when the price of mobile service rises from $100 to $120 per month, the quantity demanded of landline service decreases to 11,000. Suppose also that when the average income increases to $60,000, the quantity demanded of mobile service increases to 33,000.
-Refer to Scenario 5-6. Considering the income elasticity, what type of good is mobile telephone service?

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Definitions:

Peer-To-Peer

A decentralized network configuration where each participant, or peer, has equal privileges and shares resources directly without a centralized administrative system.

E-Mail Attachment

A file sent along with an email message, which can be in any format including documents, images, or videos.

Government Impersonation

The act of falsely representing oneself as a member of the government, often with fraudulent intentions, to deceive individuals or entities.

Dept. Of Homeland Security

A federal agency in the United States tasked with public security, including anti-terrorism, border security, immigration and customs, cyber security, and disaster prevention and management.