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Sergio039 [100]
3 years ago
8

At the time of the case (2001-02), the cell phone industry is known for very high customer dissatisfaction. Despite most carrier

s locking customers in with contracts, the big carriers churn a large percentage of customers each year. Clearly, customers are frustrated and are not loyal to their carrier. What are the sources of this dissatisfaction
Business
1 answer:
kondaur [170]3 years ago
7 0

Answer:

price levels and price structure

Explanation:

A mobile carrier may be defined as the wireless service provider which supplies the cellular connectivity services to the mobile phone as well as the tablet subscribers. IN other words it is the wireless carrier of the mobile. The cell phone users pay for the usage of the mobile carrier to the mobile company.

But in the 2001-2002, there has been a very high dissatisfaction of the customer of the mobile company.  Despite most of the carriers locking their customers with the contracts, the big carriers of mobile operator churn a very large percentage of these customers each year. Most of the carriers tries to hold their customers as "hostages" through the contracts and they feel they are trapped in the plans.

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A.      The cheese and crackers that are being consumed by Carlos is not considered to be inferior goods because when there is a time that his income may rise, he will likely consume other products aside from it.

B.      If the price of the cheese falls, what will likely happen is that there will be a presence of substitution effect of where the crackers will be fewer consumed and the cheese will be consumed more. When there is a presence of income effect on the other hand, the cheese will be consumed more as this will be considered as a good that is normal and the crackers to be consumed fewer as this will be classified as an inferior good. The likely outcome of it in both scenarios, Carlos will still consume fewer crackers and the cheese to be more consumed.

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