The price elasticity of demand for Kellogg's Raisin Bran is larger in absolute value than the price elasticity for all breakfast cereals.

Question

Quizplus · Accepted Answer

Kellogg's Raisin Bran is a specific brand and may have more substitutes compared to all breakfast cereals as a category, which makes its demand more sensitive to changes in price. Therefore, its price elasticity of demand is likely to be larger in absolute value.

The Price Elasticity of Demand for Kellogg's Raisin Bran Is