Question

· | NEWS WIRE PRICE, SALES, AND TOTAL REVENUE Starbucks Customers Shrug Off Price Hike Starbucks announced new price hikes, effective June 24. The price of coffees and lattes will increase 5-20 cents per cup, depending on size, while the price of beans wll jump from $8.99 to $9.99 for a 12-ounce bag. Analysts think it's a good move for Starbucks. Past price hikes haven't made a dent in customer visits. The company says the average customer now spends $4.25 per visit. The new price hike will raise that spend to $4.30, or about 1 percent. CEO Howard Schultz expects revenue growth to accelerate in the coming year. Source: News accounts of June-July 2014 According to the News Wire, a. Starbucks raised average coffee prices by about b. if unit sales didn't decline at all, price elasticity would equal c. if unit sales fell by 0.2 percent, price elasticity would equal d. in the case presented in part c, demand would have been e. in the case presented in part c, total revenue would have

Answer 1

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