The demand curve for Froot Loops breakfast cereal is veryelastic because:
A)most breakfast cereals are considered a luxury good.
B)there are many good substitutes for Froot Loops.(True Answer )Correct
C)the demand curve is negatively sloped.
D)it is one of the most advertised cereals in the world.

Question

Quizplus · Accepted Answer

The demand curve for Froot Loops breakfast cereal is very elastic because there are many good substitutes for Froot Loops. This means that if the price of Froot Loops were to increase, consumers could easily switch to a cheaper substitute such as Cheerios, thereby reducing their demand for Froot Loops. Conversely, if the price of Froot Loops were to decrease, consumers might switch from their usual substitute to Froot Loops, thereby increasing their demand for Froot Loops.

The Demand Curve for Froot Loops Breakfast Cereal Is Veryelastic