The price elasticity of demand for coffee in a local area


The price elasticity of demand for coffee in a local area has been found to be 1.5. Elaine a coffee seller is concerned about this since she would like to raise the price of each cup of coffee she sells from the current price of $2.00 to $3.00. If she currently sells 130 cups of coffee each day and she goes ahead to raise the price of coffee, how many cups would she be expected to sell each day? From what we have learned about elasticity, why exactly is Elaine concerned about raising her price? Explain.

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Business Economics: The price elasticity of demand for coffee in a local area
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