Which of the following statements would you expect to be true about the demand elasticities for cornflakes and food?
A)Food has a higher price elasticity of demand because it is a necessity.
B)Because cornflakes is food,cornflakes would have the same price elasticity of demand as food.
C)Compared with food,cornflakes have a lower price elasticity of demand because it is specifically defined.
D)Food has a lower price elasticity of demand than cornflakes because it is more broadly defined.
E)Because cornflakes is food,but not all food is cornflakes,cornflakes would have a lower price elasticity of demand.

Question

Quizplus · Accepted Answer

Food, being a necessity and more broadly defined, tends to have a lower price elasticity of demand compared to a specific product like cornflakes, which is more narrowly defined and has more substitutes.

Which of the Following Statements Would You Expect to Be