When Joe's Coffee Nook Raised the Price of a Latte

question 23

Multiple Choice

When Joe's Coffee Nook raised the price of a latte, Joe noticed a substantial change in his daily latte sales. A price reduction caused his sales to increase. From this information, you can assume the demand for lattes is ________.

• A) static
• B) supply-driven
• C) across-elastic
• D) elastic
• E) inelastic

---

Definitions:

Negligent

Failing to take proper care in doing something, often resulting in damage or injury to others.

Authoritarian

Characterized by or favoring strict obedience to authority, especially that of the government, often at the expense of personal freedom.

Permissive

A parenting style characterized by low demands with high responsiveness, where parents are lenient and avoid confrontation.

Authoritative

Possessing or exhibiting authority; commanding respect based on competence or expertise.