If the Price of Wireless Phone Service Decreases and the Demand

question 142

Multiple Choice

If the price of wireless phone service decreases and the demand for wired phone services decreases, then wired and wireless phone services are

• A) substitutes.
• B) complements.
• C) inferior goods.
• D) elastic goods.

---

Definitions:

Inventory Investment

The purchase of goods and materials for the purpose of storing them for future sale or use in production.

Level of Inventory

Indicates the quantity of goods or materials a company has in stock at a given time, a critical factor in supply chain and operations management.

Disposable Income

The amount of income left to an individual after taxes have been paid, available for spending and saving.

Control

In an experiment or study, the standard to which comparisons are made; in management, the process of directing and regulating processes, systems, or organizations.