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The Cross-Price Elasticity of Demand Between an Unlimited Texting Option

Question 186

Multiple Choice
The cross-price elasticity of demand between an unlimited texting option and an unlimited call minutes option offered from a cell phone provider would be
A)positive if subscribers consider the services substitutes for each other.
B)positive if subscribers consider the services complements to each other.
C)negative if subscribers consider the services substitutes for each other.
D)negative no matter if subscribers consider the services substitutes or complements for each other.

The cross-price elasticity of demand between an unlimited texting option and an unlimited call minutes option offered from a cell phone provider would be


A) positive if subscribers consider the services substitutes for each other.
B) positive if subscribers consider the services complements to each other.
C) negative if subscribers consider the services substitutes for each other.
D) negative no matter if subscribers consider the services substitutes or complements for each other.

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