With the increased usage of cell phone services, what has happened to the price elasticity of demand for land-line 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 cell phone services, consumers have more substitutes for land-line telephone services. This means that the demand for land-line telephone services has become more price elastic, as consumers are more willing and able to switch to alternatives if the price of land-line services increases.

With the Increased Usage of Cell Phone Services, What Has