The Demand for Cheerios Cereal Is More Price-Elastic Than the Demand

question 374

Multiple Choice

The demand for Cheerios cereal is more price-elastic than the demand for cereals as a whole. This is best explained by the fact that

• A)Cheerios are a luxury.
• B)Cereals are a necessity.
• C)there are more substitutes for Cheerios than for cereals as a whole.
• D)consumption of cereals as a whole is greater than consumption of Cheerios.

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Definitions:

Unconditioned Response

An innate, spontaneous response to a stimulus that happens without any previous instruction or training.

Conditioned Response

A learned response to a previously neutral stimulus due to conditioning.

Previous Conditioning

The influence of past conditioning experiences on current behavior and learning.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without prior learning or conditioning.