Phone data plans often charge a high price for daytime use and a lower price on evenings and weekends. An economist would say this is because
A) total benefits decrease as you use more minutes.
B) it is less expensive to provide service when it is dark outside.
C) marginal benefits increase as you talk longer.
D) not many people have cell phones these days.
E) marginal benefits can decrease as circumstances change.

Question

Quizplus · Accepted Answer

This pricing strategy reflects the concept that the value (or marginal benefit) of using phone services can decrease as circumstances change, such as during different times of the day when demand varies. During peak hours, the network is more congested, making each additional minute of use less valuable compared to off-peak times when the network is underutilized.

Phone Data Plans Often Charge a High Price for Daytime