The growing popularity of email is likely to cause the price elasticity of demand for first class Postal Service mail to
A) decrease
B) stay the same
C) increase
D) become negative

Question

Quizplus · Accepted Answer

The price elasticity of demand for first class Postal Service mail is likely to increase because as email becomes more popular, consumers are more likely to switch to email (a substitute) from traditional mail if the price of traditional mail increases, making demand more sensitive to price changes.

The Growing Popularity of Email Is Likely to Cause the Price