Give me answer of all question as they connected • The following table shows the relationship between the price of a cup of cafe latte and the amount of cups of coffee that Cafe Costa sells: Coffee price in dollars 5 Required amount 200 180 120 50 5 7 10 12 1. Calculate the elasticity of a price demand when the price goes from $6 to $7 based on the midpoint law 2. When the price rises from $6T to $7T, is demand elastic, inelastic, or unielastic? Why? 3. In this case, if Costa decides to raise the price of cafe latte from $6 to $7, what happens to her total revenue? He explained the answer in two

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Give me answer of all question as they connected
• The following table shows the relationship between the price of a
cup of cafe latte and the amount of cups of coffee that Cafe Costa
sells:
Required amount
200
Coffee price in dollars
180
6
120
50
7
10
12
1. Calculate the elasticity of a price demand when the price goes
from $6 to $7 based on the midpoint law
2. When the price rises from $6T to $7T, is demand elastic, inelastic, or
unielastic? Why?
3.
In this case, if Costa decides to raise the price of cafe latte from $6 to $7,
what happens to her total revenue? He explained the answer in two
different ways.
4_
Manager 1: "The only way we can increase the revenue we get from selling
frozen pizza is to lower the price."
Manager 2: "Reducing the price of the product does not increase the
amount of revenue you make. If we want to increase revenue, we have to
raise price.
What is required is to state whether or not you agree with the second
director's opinion and why? (The answer is within three lines)
Transcribed Image Text:Give me answer of all question as they connected • The following table shows the relationship between the price of a cup of cafe latte and the amount of cups of coffee that Cafe Costa sells: Required amount 200 Coffee price in dollars 180 6 120 50 7 10 12 1. Calculate the elasticity of a price demand when the price goes from $6 to $7 based on the midpoint law 2. When the price rises from $6T to $7T, is demand elastic, inelastic, or unielastic? Why? 3. In this case, if Costa decides to raise the price of cafe latte from $6 to $7, what happens to her total revenue? He explained the answer in two different ways. 4_ Manager 1: "The only way we can increase the revenue we get from selling frozen pizza is to lower the price." Manager 2: "Reducing the price of the product does not increase the amount of revenue you make. If we want to increase revenue, we have to raise price. What is required is to state whether or not you agree with the second director's opinion and why? (The answer is within three lines)
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