Question

Because the demand for local telephone service is relatively inelastic 

a) small price increases have little impact on quantity demanded. 
b) the government cannot tax telephone rates.
c) consumers should make as few long-distance calls as possible.
d) the number of telephones in the home has increased.​

Answer 1

Because the demand for local telephone service is relatively inelastic, modest price increase have little or no impact on quantity demanded.

Step-by-step explanation: