question archive What does it mean for telephone service to be 'elastic'?

What does it mean for telephone service to be 'elastic'?

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What does it mean for telephone service to be 'elastic'?

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Indeed, the demand for telephone services is elastic. This means that changes in pricing impact the demand for this service rather considerably. Certainly, price sensitivity is a big consideration for the budget-conscious telephone user. Since we pay more service fees the longer we talk, average telephone service consumers choose to cut the time they spend talking on their phones to reduce the total amount due.

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