Is elasticity of demand for coffee elastic?

Question

Is elasticity of demand for coffee elastic?

Answer 1

Sure is

Answer 2

I am currently taking an economics class and that question was on our midterm I said coffee was elastic my teacher marked it wrong because he said he could argue that point.To sum the conversation up he said, coffee can not be considered elastic because their are a lot of brands to choose from.

Answer 3

cofee is a beverage!

rehma , cofee is of various brands and qualities,differing slightly sometimes drastically in flavour, for those brands having disting flavours, demand is inelastic, more true for brands with a class symbol which has existed for years for others demand is inelastic as a coffee taster knows the difference, so most of the beans and powders have elastic demand, while some brands have pretty inelastic demand for their reputation indistinct homogeneous taste for which the bevarage consumer is ready to accept a higher price! again cofee as a commodity has inelastic demand uo to a certain range. because a bevarage needs to consider the addictive nature of flavour too.

see coffee markets in india has lately developed in most suburban areas away from coffee's cultivation prev only instanta powder ruled---- nwith chickory variations and nescafe was the leader now off course u hav bru there too!

to get some more info see how coffee is made; and think of my reasoning! prev some used to think tea or coffee,good b'cause of tea's anti oxidants, but now the markets r more developed, people hav distinct pref as some latest res proves

try tasting some diff cofee, same perp. the one u lik and make the thought process urself......... it's true across any beverage market. again elasticity here refers to point elasticity, diff segmans of consumers have diff endowments , nd when without enough money that is on vast increases the'll be trying to leave the market, eg. raise of l.p.g prices too much has given boost to microwave ovens in suburban areas, even while peole r not confident about their use!

happy brewing!

Answer 4

I think its, Relatively inelastic (0 < n < 1), because there is no substitute of coffee. So if the price of coffee increases, there will not be much difference in the quantity demanded. I assume that the Tea is not a "perfect" substitute for coffee.