If the Price of Coffee Increases from $2

question 295

Multiple Choice

If the price of coffee increases from $2.50 per cup to $3.00 per cup and the quantity demanded goes down from 120 cups per week to 115 cups per week, the absolute value of price elasticity of demand in that price range is approximately

• A) 0.23.
• B) 4.35.
• C) 0.93.
• D) 2.34.

---

Definitions:

Top Management

The highest level of executives and administrators in an organization, responsible for making strategic decisions and overseeing the organization's operations.

Persuade

The action or process of convincing someone to do or believe something through reasoning or argument.

Target Audience

The specific group of people at whom a particular message, campaign, or product is aimed.

Promotional Campaign

A coordinated series of promotional efforts built around a single theme or strategy, intended to achieve specific marketing goals.