For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent.

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 dropped by 5 percent, what can you infer about the own price elasticity of demand for Big G cereal? Can you predict whether revenues on sales of its Lucky Charms brand increased or decreased? Explain.

“Get 15% discount on your first 3 orders with us”
Use the following coupon
FIRST15

Order Now