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 absolute value of the price elasticity of demand for Starbucks coffee is
A) 0.40.
B) 0.80.
C) 1.25.
D) 2.50.
E) 4.
Correct Answer:
Verified
Correct Answer:
Verified
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