Demand itinerary for coffee at inter metro

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Assume that students and faculty have the following demand itinerary for coffee at Inter Metro:

Price Amount Respondent

(Faculty) Defendant Amount

(Students)

$ 1.00 500 5,000

1.50 450 4,000

2.00 400 3,000

2.50 350 2,000

If the price increases from $ 1.50 to $ 2.50, what will be the price elasticity of the demand of the faculty and students? (Use the midpoint method for your calculations.)

What reason could there be for students to have elasticity other than faculty?

Reference no: EM132367296

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