Question: A recent article in Bloomberg suggested that coffee drinkers do not vary much in consumption of their beverage even when when the prices go up

A recent article in Bloomberg suggested that coffee drinkers do not vary much in consumption of their beverage even when when the prices go up or down.

What are the characteristics of people who would pay more for coffee and alter their consumption very little?

What other types of goods have the same characteristics as coffee in this story?

Using the information below and compute the elasticity of demand. (Please show all your math)

PriceQuantity Demanded

$2100

$490

Which scenario shows elastic demand?

Which shows inelastic demand?

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