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Is the demand for breakfast cereal likely to be price elastic or price inelastic and why?

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Items that people are willing to buy even when prices increase are said to be demand inelastic. Overall, the demand for breakfast cereal is demand inelastic, because in western societies, cereal is simply something we eat for breakfast. It would be hard for many people to imagine an alternative to it or a substitute for it. So if the price for cereal overall went up (within reason), the chances are good that people would still buy it. Its convenience as a breakfast item for busy families, and the fact that there are so many varieties of it, means that it has what economists call "utility" for consumers. At the same time, particular brands of cereal can be easily copied and replaced. This is evident when you walk down a supermarket aisle—there are generic brands of almost every popular brand of cereal. So if the makers of a particular brand of cereal elevated their prices too much, consumers would probably turn to the less expensive "imitation" version. So the price of cereal

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