Tuesday, April 9, 2013

Cell Phone Plans & Elasticity of Demand

Today in class, we were discussing the elasticity of demand, and talking about certain products and if they were inelastic or elastic products. It made me think of cell phones and cell phone plans, and how more and more people today have a smart phone. Cell phone carriers like AT&T and Verizon Wireless have been known to raise their prices for plans, especially data plans. Our society has become extremely dependent on our cell phones and technology in general. Pretty soon it seems like people won't be able to do their day to day activities without their cell phones and expensive data plans.
Although some people are against the new smart phone era, I definitely think that cell phone plans are in elastic demand. Our generation has already witnessed multiple price raises in data plans, no matter what carrier we use.

Does anyone disagree with me about cell phone plans? Do you think that the more data plan prices rise, the fewer people will purchase them?

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