Between 1994 and 2004, the monthly charge for cellular phone service decreased from $120 per month to $30 per month. At the same time, the number of subscribers increased from less than 10 million to more than 75 million. Which of the following provides the best explanation for these changes?
A) an increase in consumer income between 1994 and 2004
B) a reduction in the price of residential phone service, a substitute for cellular phone service
C) an increase in the wages of workers in the cellular phone industry
D) technological improvements that reduced the cost of supplying cellular phone service

Question

Quizplus · Accepted Answer

Technological improvements likely reduced the cost of providing cellular phone service, allowing companies to lower prices and attract more subscribers.

Between 1994 and 2004, the Monthly Charge for Cellular Phone