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.


c

Economics

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What will be an ideal response?

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