Multiple Choice
Suppose that Starbucks reduces the price of its premium coffee from $2.20 to $1.80 per cup, and as a result, the quantity sold per day increased from 350 to 450. Over this price range, the price elasticity of demand for Starbucks coffee is:
A) 0.40.
B) 0.80.
C) 1.25.
D) 2.50.
Correct Answer:
Verified
Correct Answer:
Verified
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