Shep goes to his favorite coffee shop every morning and always buys one large latte, no matter whether there is a special or not (i. e., half-price Mondays).

What is his price elasticity of demand for lattes?

Question

Jaylin Thornton

Business

13 June, 11:32

Shep goes to his favorite coffee shop every morning and always buys one large latte, no matter whether there is a special or not (i. e., half-price Mondays).

What is his price elasticity of demand for lattes?

+2

Answers (1)

Know the Answer?

Alfredo Curry · Answer 1

Price elasticity of demand = 0

Explanation:

The price elasticity of demand is zero because Shep's demand for lattes is perfectly inelastic since an alteration in price (i. e., half-price Mondays) does not affect consumption in the slightest, which means that he will always consume exactly one latte every morning regardless of price.

Shep goes to his favorite coffee shop every morning and always buys one large latte, no matter whether there is a special or not (i. e., half-price Mondays).What is his price elasticity of demand for lattes?

Shep goes to his favorite coffee shop every morning and always buys one large latte, no matter whether there is a special or not (i. e., half-price Mondays).

What is his price elasticity of demand for lattes?