A box of corn flakes cereal is likely to be:
A)very price elastic,since there are many close substitutes available.
B)less price elastic,since there are many close substitutes available.
C)very price elastic,since the cereal is a unique product.
D)less price elastic,since the cereal is a unique product.

Question

Quizplus · Accepted Answer

Corn flakes cereal is likely to be very price elastic because there are many close substitutes available in the market. If the price of one brand of corn flakes increases, consumers may switch to a different brand, or even a different type of cereal altogether. This means that a small change in price can lead to a significant change in demand.

A Box of Corn Flakes Cereal Is Likely to Be