1. The following is an estimited global de. lanc. function for cr ffee: Q_(c)= 100.6125-0.393P_(c) Assume that tice average consumption of coffee over ten years was 61.33 million Kilograms and the ererige price was Ksh74.54 per kilogram. Determ ine the will elasticity of demond. C Niari..

To determine the price elasticity of demand, we use the formula for elasticity: From the given demand function: The derivative of with respect to is .Given:- Average consumption ( ) = 61.33 million kilograms- Average price ( ) = Ksh 74.54 per kilogramSubstitute these values into the elasticity formula: Calculate: Therefore, the price elasticity of demand is approximately . This indicates that the demand for coffee is inelastic since the absolute value is less than 1.