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 -6 percent, what can you infer about the own price elasticity of demand for Big G cereal? It is (Click to select) v Can you predict whether revenues on sales of its Lucky Charms brand increased or decreased? O Yes - it decreased. O No - you can't tell. O Yes - it increased.
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 -6 percent, what can you infer about the own price elasticity of demand for Big G cereal? It is (Click to select) v Can you predict whether revenues on sales of its Lucky Charms brand increased or decreased? O Yes - it decreased. O No - you can't tell. O Yes - it increased.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text: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 -6 percent, what can you infer about the own price elasticity of demand for
Big G cereal?
It is (Click to select) v
Can you predict whether revenues on sales of its Lucky Charms brand increased or decreased?
O Yes - it decreased.
O No - you can't tell.
O Yes - it increased.
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