Related to the Economics in Practice on page 722: By 2001, the majority of the fishing fleet in the Indian state of Kerala had mobile phones. As a result of the introduction of mobile phone service to this fishing industry, profits ________ and consumer prices ________.
A) rose; fell
B) fell; rose
C) rose; rose
D) fell; fell

Question

Quizplus · Accepted Answer

The availability of mobile phones enabled the fishermen to access up-to-date market information and negotiate better prices for their catch, leading to a rise in profits. With increased competition among fishermen due to better communication, consumer prices may have fallen or remained stable. Therefore, the best choice is A, where profits rose and consumer prices fell or remained stable.

Related to the Economics in Practice on Page 722: by 2001