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The demand, in their case, is less elastic because businesses tend to look at their phone lines as more of a need. If a business

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The demand, in their case, is less elastic because businesses tend to look at their phone lines as more of a need. If a business is cancelling its service, it seems more likely that they have found an alternative option. If the company receives a call to cancel from a business, someone should be looking into the competition in that area, it is important to know what competing services are around. In that case, we only need to offer enough incentive to where the amount of effort it takes to switch over phone lines becomes no longer worthwhile for our customers. For business es, it might be better not to offer a one size fits all discount, but to analyze each situation on a casebycase basis with some standard guidelines available, maybe a discount range operators can work in. Knowing what kind of customer is cancelling allows us to analyze their likely elasticity, which would allow us to determine what kind of incentive might be worthwhile to offer

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