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Starbucks made the morning coffee jolt a bit more expensive in 2 0 2 2 . The price of a brewed tall ( small )

Starbucks made the morning coffee jolt a bit more expensive in 2022. The price of a brewed tall (small) coffee is now $2.65, up 18 percent from one year ago. The price increase for all its products averaged 8 percent overall. Despite the price hikes, few customers have given up their Starbucks fix. As Professor David Reibstein of the Wharton Business School noted, theyve got so much customer loyalty that theyre still able to keep their particular customer. Starbucks reported a 1 percent increase in unit sales for the year and an 11 percent increase in total revenue.
According to Front Page Economics Starbucks Raises Prices Again,LO12-2
(a) By what percent did Starbucks increase the price of a tall cup of brewed coffee?
(b) Calculate the price elasticity of demand for a tall brewed coffee if there was a decline in sales for a tall brewed coffee by 3 percent.
(c) Identify the relationship between price elasticity of demand and total revenue.

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