Market Analysts for a Large Cereal Company Estimated That Price

Market analysts for a large cereal company estimated that price elasticity of demand for pre-sweetened cereal is 1.97,but that the entire market for ready-to-eat cereals exhibits price elasticity of demand of 0.36.Most likely,this information will be collected by managers in which step of the price-setting process?

A) identifying pricing constraints and objectives
B) estimating the break-even point
C) estimating demand and revenue
D) selecting an appropriate (approximate) price level

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