MIT economist Jerry Hausman has estimated the price elasticity of demand for Post Raisin Bran cereal to be - 2.5 and the price elasticity of demand for all types of breakfast cereals to be - 0.9. The demand for Post Raisin Bran cereal is and the demand for all types of breakfast cereals is Why might the demand for Post Raisin Bran cereal be more elastic than the demand for all types of breakfast cereals? Post Raisin Bran cereal O A. has more substitutes available. O B. is more of a necessity. O C. is consumed over a shorter period of time. O D. is a smaller share of a consumer's budget. O E. is defined more broadly.When XYZ rm entered the market for goodA two years back, it kept the price of its product low to attract customers away from its leading competitor. The rm has now established itself and has a market share of 20 percent. The management of XYZ is planning to increase price ofAfrom the current $6 per unit to $7 per unit. Timothy Walters, the marketing head, however, feels this is not a good idea because it will reduce quantity demanded drastically from the current 1 ,200 units to 900 units. His colleague and the head of the sales department, Jake Meyers, feels that the quantity demanded would only decline by 250 units. According to Jake, the rm can affonzl to increase the price because even after the price increase they would still have signicant market share. Timothy and Jake most likely agree with which of the following? O A. The demand for good A is elastic. O B. The demand curve farAwill shift to the left after the price increase. O c. The market share of XYZ will increase in the near future. 0 D. The equilibrium market price is less than $6. 0 E. The total revenue will increase even if the price rises by $1