Calling long distance is more expensive on weekdays between 8 am and 5 pm than in the evening hours. Why is this the case?
A) Businesses who must call suppliers or customers during business hours have few alternatives and therefore have an inelastic demand during the workday compared to after -work hours.
B) The cost of making long -distance connections is higher during the day than in the evenings.
C) Increasingly, businesses who must call suppliers or customers during business hours resort to the internet, thereby reducing demand for long -distance calls. To make for this fall in demand, telephone companies slap on higher rates.
D) Telephone companies hope to discourage customers from calling long distance during the day to keep their labor costs down.

Question

Quizplus · Accepted Answer

The primary reason long-distance calls are more expensive during weekdays between 8 am and 5 pm is due to the inelastic demand from businesses that need to communicate with suppliers or customers during standard business hours. They have fewer alternatives during these times, leading to higher prices.

Calling Long Distance Is More Expensive on Weekdays Between 8