Answer to Question #69313 in Microeconomics for manni
If the charge for a phone call was higher between 8 AM and 6 PM Monday to Friday than between 6 PM and 8 AM this could be explained by the fact that the demand for phone calls is ________ between 8 AM and 6 PM and the demand for phone calls is ________ between 6 PM and 8 AM.
A. perfectly elastic; perfectly inelastic
B. less elastic; more elastic Correct
C. one; zero
D. zero; one
B. less elastic; more elastic
Explanation: For inelastic goods, an increase in unit price will tend to increase revenue, while a decrease in price will tend to decrease revenue. (The effect is reversed for elastic goods.) [https://en.wikipedia.org/wiki/Price_elasticity_of_demand]