The table below shows the retail price and sales for instant coffee and roasted coffee for two years.
a. Using these data alone, estimate the short-run price elasticity of demand for roasted coffee. Derive a lin- ear demand curve for roasted coffee.
b. Now estimate the short-run price elasticity of demand for instant coffee. Derive a linear demand curve for instant coffee.
c. Which coffee has the higher short-run price elas- ticity of demand? Why do you think this is the case?