If the price of wireless phone service decreases and the demand for wired phone services decreases, then wired and wireless phone services are
A) substitutes.
B) complements.
C) inferior goods.
D) elastic goods.

Question

Quizplus · Accepted Answer

When the price of wireless phone service decreases, consumers may substitute wireless for wired phone services, leading to a decrease in demand for wired phone services. Therefore, wired and wireless phone services are substitutes.

If the Price of Wireless Phone Service Decreases and the Demand