When the prices of postage stamps rise, the demand for Internet service increases, ceteris paribus.Postage stamps and Internet service are therefore
A) Elastic.
B) Inelastic.
C) Complements.
D) Substitutes.

Question

Quizplus · Accepted Answer

When the prices of postage stamps rise, people tend to switch to email and other online communication methods, leading to an increase in demand for internet service. This indicates that postage stamps and internet service are substitutes for each other.

When the Prices of Postage Stamps Rise, the Demand for Internet