We would expect the own price elasticity of demand for food to be:
A) less elastic than the demand for cereal.
B) more elastic than the demand for cereal.
C) the same as that for soap.
D) perfectly inelastic.

Question

Quizplus · Accepted Answer

The demand for food in general is less elastic than the demand for specific food items like cereal because food is a basic necessity, and consumers will continue to buy it even if prices rise, whereas they can more easily substitute between different types of food items.

We Would Expect the Own Price Elasticity of Demand for Food