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{"ops":[{"insert":"1. The initial price of a cup of coffee is Php1, and at the price, 400 cups are demanded. If the price falls to Php0.9, the quantity demanded will increase to 500 "},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"a. Calculate the (arc) price elasticity of demand for coffee. Show the solution."},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"b.Based on your answer to question 1.a., is the demand for coffee elastic or inelastic?"},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":""},{"insert":"\n"},{"insert":"c.Based on your answer to question 1.a., if the price of coffee is increased by 10%, what will happen to the revenues from coffee? Carefully explain how you know."},{"insert":"\n"}]}
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