Question: 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

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.

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