For the first time in two years, big g (the cereal division of general mills) raised cereal prices by 4 percent. if, as a result of this price increase, the volume of all cereal sold by big g changed by -2 percent, what can you infer about the own price elasticity of demand for big g cereal?
a. elastic
b. inelastic
c. unit elastic
can you predict whether revenues on sales of its lucky charms brand increased or decreased?
a. yes - it increased.
b. no - you can't tell.
c. yes - it decreased
Answers: 1
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For the first time in two years, big g (the cereal division of general mills) raised cereal prices b...
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