You are advising a coffee shop manager who wants to estimate how much sales will change if

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You are advising a coffee shop manager who wants to estimate how much sales will change if the price of a latte rises. Explain why he should measure elasticity in percentage terms rather than in terms of dollars and cups.

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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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Question Posted: Nov 27, 2015 02:09 AM

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You are advising a coffee shop manager who wants to estimate how much sales will change if

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If the coffee shop manager measures elasticity in percentage changes he will have an ...View the full answer

Microeconomics

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