Two friends who are addicted to starbuckrsquos iced coffee, Ask an Expert

Economics

Two friends who are addicted to Starbuck’s iced coffee were overheard talking. John said “No matter what the price of iced coffee is or will be, I will buy 4 cups a day.” His friend, Peter said “if Starbucks raises the price of a tall iced coffee above the current $1.95, I will not buy any coffee.”

What is the price elasticity of demand for iced coffee for John and for Peter?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91719222

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