With an inelastic demand, the changes in price have a much smaller impact on the quantity demanded. This is illustrated in slide 11 of the Attend Section of Week 3. In fact, the total revenue will increase due to the minor changes in pricing. Therefore, I would recommend the coffee shop increase its price of coffee.
With an inelastic demand, the changes in price have a much smaller impact on the quantity demanded. This is illustrated in slide 11 of the Attend Section of Week 3. In fact, the total revenue will increase due to the minor changes in pricing. Therefore, I would recommend the coffee shop increase its price of coffee.