In the article, by Anthony Harrup, the Mexican government has lost income because people are using more “mobile to mobile” phone calls. The government has implemented a plan to increase revenue by lowering the rate for “fixed to mobile” phone calls. Over the coming years, this plan will increase the elasticity for the “fixed” good. Since mobiles and fixed phones are substitute goods, this new act will give the public more of a reason to make “fixed to mobile” calls. Is lowering the price of an inferior good going to increase revenue? I believe by increasing elasticity, the volume of calls will go up, and the government will eventually see a profit. http://www.smartmoney.com/news/ON/index.cfm?story=ON-20050106-001086-1800.