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Question
multiple choice 1 point everyday cellular phone companies are expanding their services to more and more locations. all else equal, as cellular service becomes more widely available we would expect the price of cell phone calling plans (a compliment good for consumers) to decrease due to a decrease in supply. increase due to an increase in demand. decrease due to a decrease in demand. increase due to an increase in supply.
When cellular service becomes more widely available (increase in supply of the main service), and cell - phone calling plans are a compliment good, the demand for calling plans increases. According to the law of demand and supply, an increase in demand for a good (calling plans) with no change in supply initially leads to an increase in its price.
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increase due to an increase in demand.