With the increased usage of mobile services, what has happened to the price elasticity of demand for landline 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.

Question

Quizplus · Accepted Answer

With the increased usage of mobile services, the demand for landline telephone services has decreased, leading to a more elastic demand curve. Customers now have more options to choose from, and they are more likely to switch to different services if the price of landline telephone services increases. Therefore, the price elasticity of demand for landline telephone services has become more price elastic.

With the Increased Usage of Mobile Services, What Has Happened