Monday 11 July 2011

Unit 4: Exercise 4-2 Elasticity and Revenue

 Fast food prices set to rise: observers
 http://www.albertalocalnews.com/business/Fast_food_prices_set_to_rise_observers_119403699.html?period=W&mpStartDate=03-31-2011&

Article Summary:
1. Prices of coffee went up due to higher cost of ingredients.
2. This is an article from The Canadian Press describing an increase in the price of Tim Hortons coffee in Canada.
3. Higher cost for beans due to poor crops and diease. 
4. Demand for coffee tends to be inelastic since these types of routine purchases tend to be insensitive to the kinds of price increases.

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