Between 1994 and 2004, the Monthly Charge for Cellular Phone

question 142

Multiple Choice

Between 1994 and 2004, the monthly charge for cellular phone service decreased from $120 per month to $30 per month. At the same time, the number of subscribers increased from less than 10 million to more than 75 million. Which of the following provides the best explanation for these changes?

• A) an increase in consumer income between 1994 and 2004
• B) a reduction in the price of residential phone service, a substitute for cellular phone service
• C) an increase in the wages of workers in the cellular phone industry
• D) technological improvements that reduced the cost of supplying cellular phone service

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Definitions:

Sweaters

Knitted garments intended to cover the torso and arms, providing warmth and fashioned from materials like wool, cotton, or synthetic fibers.

Comparative Advantage

The ability of a country, company, or individual to produce a particular good or service at a lower opportunity cost than others, leading to more efficient trade and production.

Opportunity Cost

The value of the next best alternative forgone as the result of making a decision.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, technology).