Which of the following will not cause the supply of long-distance telephone service to increase?
A)A reduction in the number of long-distance companies
B)A reduction in space shuttle fees to launch telecommunications satellites
C)A decrease in the price of computer electronics used to route long-distance calls
D)A decrease in the number of government regulations on long-distance telephoning services
E)A reduction in the price of fiber-optic cables over which phone messages are sent

Question

Quizplus · Accepted Answer

A reduction in the number of long-distance companies would decrease the supply of long-distance telephone service, as there would be fewer companies providing the service. The other answer choices would all increase the supply of long-distance telephone service, either by reducing costs (B and E) or reducing regulatory barriers (D), or by increasing the efficiency of routing long-distance calls (C).

Which of the Following Will Not Cause the Supply of Long-Distance