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