Asked by Jeanette Garcia on Sep 23, 2024
Verified
Which of the following statement is true?
A) The demand for Cheerios is less elastic than the demand for cereal
B) The demand for gas is more elastic in the short-run than in the long-r
C) The demand for puma shoes is more elastic than the demand for shoes
D) Products with many complements have a more elastic demand
Demand for Cheerios
The consumer desire and willingness to purchase Cheerios, a popular brand of breakfast cereal, at various price points.
Elastic than Demand
Refers to a situation where the quantity demanded of a good is more sensitive to changes in price, indicating a high price elasticity of demand.
Cereal
A food product made from processed grains, often eaten as breakfast and typically served cold with milk.
- Gain an insight into how price fluctuations influence demand elasticity.
- Examine the influence of substitute and complementary products on the elasticity of demand.
Verified Answer
NR
Nerissa Ramos3 days ago
Final Answer :
C
Explanation :
The demand for a specific brand of a product (like Puma shoes) is generally more elastic than the demand for the product category as a whole (like shoes) because consumers can easily switch to other brands if the price of one brand increases, indicating a higher sensitivity to price changes.
Learning Objectives
- Gain an insight into how price fluctuations influence demand elasticity.
- Examine the influence of substitute and complementary products on the elasticity of demand.