1. Do you think the elasticity of demand for coffee at the Starbucks in the picture located a few blocks from your University is the same as the elasticity of demand for coffee at a Starbucks located in Paris France? Why or why not?
2. Do you think that there is a different elasticity of demand for each product sold by Starbucks at a particular store location? Explain.
3. Even if the elasticity of demand for a particular product is such that raising the price has very little effect on gross revenue (inelastic demand), do you think the business owner can raise the price of their product by 500% and still have little effect on their gross revenue? Explain.