The price elasticity of demand coefficient for gourmet coffee is estimated to be equal to 1.6 . It is expected, therefore, that a 10% increase in price would lead to:
a. a 16% decrease in the quantity of gourmet coffee demanded.
b. a 16% increase in the quantity of gourmet coffee demanded.
c. an 8% decrease in the quantity of gourmet coffee demanded.
d. an 8% increase in the quantity of gourmet coffee demanded.
a
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