Economist Jerry Hausman Estimated the Price Elasticity of Demand for Breakfast

question 1

Multiple Choice

Economist Jerry Hausman estimated the price elasticity of demand for breakfast cereal. He found that

• A) the price elasticity for a particular brand of raisin bran was the same as the elasticity of demand for all family cereals.
• B) the price elasticity of demand for Post Raisin Bran is less than the price elasticity of demand for Kellogg's Raisin Bran.
• C) the price elasticity of all family breakfast cereals is greater than the price elasticity of demand for Post Raisin Bran or Kellogg's Raisin Bran.
• D) the price elasticity of demand for a particular brand of raisin bran was larger in absolute value than the elasticity for all family cereals.

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Definitions:

Totals

The sum amounts resulting from the addition of numbers, quantities, or items.

Ratios

A quantitative relationship between two numbers showing how many times one value contains or is contained within the other, often expressed as "a to b" or a:b.

Polling Booth

A private area in a polling station where voters go to mark their ballots during an election, ensuring the confidentiality of their vote.

Ratio

A mathematical expression that compares two numbers or quantities, showing the relative size or amount of one to the other.