Calculate price elasticity of demand for coffee

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The initial price of a cup of coffee is $1.5, and at that price, 200 cups are demanded. If the price falls to $0.90, the quantity demanded will increase to 350 cups.

a. Calculate the (arc) price elasticity of demand for coffee.

b. Based on your answer, is the demand for coffee elastic or inelastic?

Reference no: EM13277853

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