Table 5-1
Suppose a Coffee Shop Faces the Following Demand

question 21

Multiple Choice

Table 5-1
Suppose a coffee shop faces the following demand schedule for coffee. $\begin{array}{|c|c|}\hline \text { Price per coffee (\$) } & \text { Quantity demanded } \\\hline 4.00 & 200 \\\hline 3.00 & 600 \\\hline 2.50 & 800 \\\hline 2.00 & 1000 \\\hline 1.50 & 1200 \\\hline 1.00 & 1400 \\\hline\end{array}$
-Refer to Table 5-1.Notice that if the price is lowered from $2.00 to $1.50, total revenue falls from $2000 to $1800.This means that over this price range, the demand for coffee must be:

• A)price elastic
• B)price inelastic
• C)price unit elastic
• D)income elastic