The Cross-Price Elasticity of Demand Between an Unlimited Texting Option

question 167

Multiple Choice

The cross-price elasticity of demand between an unlimited texting option and an unlimited call minutes option offered from a mobile phone provider would be

• A) positive if subscribers consider the services substitutes for each other.
• B) positive if subscribers consider the services complements to each other.
• C) negative if subscribers consider the services substitutes for each other.
• D) negative no matter whether subscribers consider the services substitutes or complements for each other.

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Definitions:

U.S. Territory

Land or regions under the jurisdiction of the United States but not fully incorporated as states, often having distinct governance structures.

Andrew Jackson

The seventh President of the United States (1829-1837), known for his leadership during the Battle of New Orleans and for his policies regarding Native American removal.

Monroe Doctrine

A U.S. foreign policy principle set forth in 1823, proclaiming opposition to European colonialism in the Americas.

North and South America

Denotes the two continents making up the Americas, with North America including countries like the United States and Canada, and South America comprising countries like Brazil and Argentina.