Which of the Following Statements Would You Expect to Be

question 99

Multiple Choice

Which of the following statements would you expect to be true about the demand elasticities for cornflakes and food?

• A) Compared with food, cornflakes has a lower price elasticity of demand because it is specifically defined.
• B) Food has a lower price elasticity of demand than cornflakes because it is more broadly defined.
• C) Food has a higher price elasticity of demand because it is a necessity.
• D) Because cornflakes is food, cornflakes would have the same price elasticity of demand as food.
• E) Because cornflakes is food, but not all food is cornflakes, cornflakes would have a lower price elasticity of demand.

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Definitions:

Decimal Equivalent

A numerical representation of a fraction where the denominator is a power of ten, expressing fractions in a decimal format.

Percent Equivalent

A value expressed as a percentage that represents the equivalence of two ratios or a fraction to a percentage.

Five-figure Accuracy

A level of precision in numerical or quantitative information that includes five significant digits.

Terminating Decimal

A decimal number that ends or has a finite number of digits after the decimal point.