With the Increased Usage of Cell Phone Services, What Has

question 168

Multiple Choice

With the increased usage of cell phone services, what has happened to the price elasticity of demand for land-line telephone services?

• A)It has become more price inelastic.
• B)It has become more price elastic.
• C)It has become more income elastic.
• D)The absolute value of the price elasticity coefficient has probably gone down.

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Definitions:

Qualitative Terms

These are descriptive, non-numerical characteristics or attributes used to assess aspects of operations, strategies, or market conditions.

Quantitative Terms

Relates to, measuring, or measured by the quantity of something rather than its quality.

Opportunity Cost

The cost of missing out on the next best alternative when making a decision or choice.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.