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Customers for Prepaid Mobile Telephone Service Pay a Lump-Sum Price

Question 13

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Customers for prepaid mobile telephone service pay a lump-sum price for a fixed quantity of usage. Customers for post-paid service enter into a contract that stipulates a monthly subscription charge and price per unit of usage. Customers of prepaid service tend to consume and spend less than customers of post-paid mobile service. Apply the concepts of normal and inferior products to prepaid and post-paid service.

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Lower income people buy prepai...

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