1. According to the Newswire in "Inelastic Demand,"
2. By what percentage did Starbucks raise brewed coffee prices?
3. Based on the analysis prediction, would this price increase cause total revenue to stay the same increase or decrease?

Suppose unit sales fell by 3 % after the price increase.

1. Calculate price elasticity.
2. In the case presented in part c, is demand to be elastic or inelastic?
3. In the case presented in part C, would total revenue have increased or decreased?