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

question 157

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:

Parliament

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Libel

A false statement made in written form or published material that damages a person's reputation.

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Intrusion

An act of entering or encroaching upon a place without permission, often violating privacy.