Marketing department estimates income elasticity of demand

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If Starbucks’s marketing department estimates the income elasticity of demand for its coffee to be 2.15, how will the prospect of an economic boom (expected to increase consumers’ incomes by 5 percent over the next year) impact the quantity of coffee Starbucks expects to sell? Instruction: Round your response to 2 decimal places. It will change by percent.

Reference no: EM131169492

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