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Learning Outcome: Use the Midpoint Formula to calculate Elasticity of Demand Suppose that Starbucks reduces the price of its premium coffee from $4 to $3

Learning Outcome:Use the Midpoint Formula to calculate Elasticity of Demand

Suppose that Starbucks reduces the price of its premium coffee from $4 to $3 per cup, and as a result, the quantity sold per day increased from 500 to 600. Over this price range, the price elasticity of demand for Starbucks coffee is (use the midpoint formula):

(Round your answer to 2 decimal places.For example, 4.34)

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