When the price of coffee increases by 5%, quantity demanded for coffee decreases by price elasticity of demand for coffee is and total revenue from coffee sales wi A) inelastic; increase B) inelastic; decrease C) elastic; increase D) elastic; decrease Lütfen birini seçin: A

Economics Aug 06, 2020

When the price of coffee increases by 5%, quantity demanded for coffee decreases by price elasticity of demand for coffee is and total revenue from coffee sales wi A) inelastic; increase B) inelastic; decrease C) elastic; increase D) elastic; decrease Lütfen birini seçin: A. O B. OC. O D.

Expert Solution

Ans:-D) elastic;decrease

Explanation:-The price elasticity of demand measure the changes in demand for a product in response to changes in the price.Coffee is an elastic product because a minor increase in price of coffee will results a larger decrease in demand for coffee .At the time of increasing price of coffee the customers start to buying more tea instead of coffee.

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