Answer to Question #69313 in Microeconomics for manni

Question #69313
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. Select one: A. perfectly elastic; perfectly inelastic B. less elastic; more elastic Correct C. one; zero D. zero; one
1
Expert's answer
2017-07-17T11:53:06-0400
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]

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