Question

Which of the following statements about the absolute value of the price elasticity of demand is correct?

A) The price elasticity of demand for laundry detergent, in general, is likely to be greater than the price elasticity of demand for Gain laundry detergent.

B) The price elasticity of demand for Gain laundry detergent is greater than the price elasticity of demand for laundry detergent in general.

C) The price elasticity of demand for gasoline is greater than the price elasticity of demand for cereal because more people eat cereal than use gasoline.

D) The price elasticity of demand for gasoline is less than the price elasticity of demand for cereal because more people eat cereal than use gasoline.