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A cafe knows that coffee such as mocha, latte and cappuccino are complementary goods with any food purchased. The cafe also has a rule that

A cafe knows that coffee such as mocha, latte and cappuccino are complementary goods with any food purchased. The cafe also has a rule that no outside food or drinks may be brought into the cafe.

Select the item from the list provided to make the following statements true.

- 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

The demand for coffee could be considered __________ because, once customers are seated and have ordered their food, they can only purchase coffee from the cafe.

- 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

If demand for coffee is inelastic at the current price, a 1% increase in the price of all coffees in the cafe would lead to a less than a __________% decrease in coffees ordered.

- 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

If demand for coffees is inelastic at the current price, the cafe deciding to increase its prices for coffee will __________ revenue.

1.

more

2.

1

3.

0.5

4.

maintain

5.

necessary

6.

increase

7.

luxury

8.

0

9.

inelastic

10.

elastic

11.

decrease

12.

substitute

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