Toasted muesli would tend to have very elastic demand because:
A) other breakfast cereals are almost perfect substitutes
B) toasted muesli belongs to a broadly defined market
C) toasted muesli is a luxury product
D) toasted muesli must be eaten quickly

Question

Quizplus · Accepted Answer

Toasted muesli would have very elastic demand because it has almost perfect substitutes in the form of other breakfast cereals. If the price of toasted muesli were to increase, consumers would likely switch to a lower-priced substitute, resulting in a significant decrease in demand.

Toasted Muesli Would Tend to Have Very Elastic Demand Because