Scenario 5-4 ​

question 38

Short Answer

Scenario 5-4
​
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. Using the midpoint method, what is the cross price elasticity of demand for landline and mobile service?

---

Definitions:

Employee Engagement

The level of enthusiasm and commitment an employee feels toward their job and company, often resulting in better performance.

Stakeholder Accountability

The responsibility of organizations to be answerable to all of their stakeholders for all actions and decisions, ensuring transparency and fairness.

Media Publicity

The act of gaining attention and awareness through media coverage without direct payment, often for promotional purposes.

Organizational Culture

Organizational culture encompasses the shared values, beliefs, norms, and practices that shape the social and psychological environment of a workplace, influencing employees' behaviors and attitudes.