Consider Bob's monthly demand for coffee. Currently, the price of each cup of coffee is $3, and Bob buys 25 cups of coffee per month. In addition, whenever the price of coffee increases by a certain percentage, Bob will reduce his purchase by twice as much (in other words, if the price increases by x%, Bob's demand will drop by 2*x%). a. Can you derive Bob's demand curve for coffee (hint: what is price elasticity)? b. Suppose a coffee shop on Georgia Tech's campus serves 400 customers, and all customers have the same individual demand curve as Bob. What is the total consumer surplus at the current price level? c. If the price P increases to $5, how many cups of coffee would Bob buy per month? How does the total revenue change? How does the total consumer surplus change