Why the coffee shop manager should measure elasticity

Reference no: EM132175409

Question: 1. You are advising a coffee shop manager who wants to estimate how much sales will change if the price of a latte rises. Explain why he should measure elasticity in percentage terms rather than in terms of dollars and cups.

2. Explain why the coffee shop manager should measure elasticity using the mid-point method in his calculations.

Reference no: EM132175409

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