The demand for Cheerios cereal is more price-elastic than the demand for cereals as a whole. This is best explained by the fact that:

A. Cheerios are a luxury
B. Cereals are a necessity
C. There are more substitutes for Cheerios than for cereals as a whole
D. Consumption of cereals as a whole is greater than consumption of Cheerios

C. There are more substitutes for Cheerios than for cereals as a whole

Explanation:

Since in the question it is given that the demand for  Cheerios cereal is more price-elastic than the demand for cereals as a whole as because there are more substitutes for Cheerios as compare to cereals because in the case of substitute goods, there is a positive relationship between the price of good B and the demand of good A. It means if the price of good B decline. then the demand of good A is decreases and vice versa

$1,267,500

To calculate estimated value using GRM (gross rent multiplier) you need to take the annual rental income times the GRM.

Monthly income= $625 so annual income= $625*12 months=

$7,500 annual * 169 GRM= 1,267,500