Price Elasticity of Demand for Coffee Blend

Medium Microeconomics Elasticity

A local coffee shop is trying to analyze the price elasticity of demand for its signature coffee blend. Over the past few months, it has observed that when the price of a cup of coffee increases by 10%, the quantity demanded decreases by 20%. What can be inferred about the price elasticity of demand for this coffee blend?

The demand for the coffee blend is elastic.

The demand for the coffee blend is inelastic.

The demand for the coffee blend is unitary elastic.

Hint

Submitted6.2K

Correct5.9K

% Correct96%