Multiple Choice
Sonik, a wireless phone company, tested the effect of a price reduction for text messaging. It lowered prices from $0.08 to $0.04 per message and found that the number of messages sent tripled. This means:
A) the demand for text messaging is inelastic in this price range.
B) the demand curve for text messaging shifted to the right.
C) the supply curve for text messaging shifted to the left.
D) the demand for text messaging is elastic in this price range.
Correct Answer:
Verified
Correct Answer:
Verified
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