1.Suppose that you own a coffee shop, which is located in a very busy neighbourhood, faces a competition with Starbucks. Everybody in the neighbourhood agrees that your coffee tastes much better than those served in Starbucks. In addition, the price of your coffee is lower relative to the Starbucks coffee. You have regular customers because of the quality of your product and the friendly atmosphere that you created. To be competitive in your local market, and/or to increase your profit, would you reduce or raise your coffee prices?

2.What would you say about the price (demand) elasticity for the COVID-19 vaccination considering the different age groups, and do you think that the price elasticity for the COVID-19 vaccination becomes more inelastic over time?