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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