The Demand for a Specific Brand of Corn Flakes Cereal

question 107

Multiple Choice

The demand for a specific brand of corn flakes cereal is likely to be:

• A) very price elastic, because there are many close substitutes available.
• B) less price elastic, because there are many close substitutes available.
• C) very price elastic, because the cost of cornflakes relative to income is low.
• D) less price elastic, because cornflakes are an inferior good for many consumers.

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Definitions:

Goods-in-bailment

A legal term referring to the process where personal property is transferred temporarily into the care of another, known as the bailee.

Negotiable Document

An official note that commits to paying a designated amount, either immediately upon request or at a predetermined date, with the payer's name indicated on the note.

Risk of Loss

The legal and financial responsibility for damages or loss to goods, typically determined by the terms of a contract or by law.

Common-carrier Delivery

The transportation of goods or people by a commercial service available to the public under license or authority provided by a regulatory body.