You've tried a few different lattes and prefer Starbucks. What would be your most likely response when the price of a latte has increased at all the coffee shops? A. Never return to Starbucks as punishment for being first to raise the price of a latte B. Return to Starbucks but drink a bit more latte because your demand for latte is elastic C. Return to Starbucks but drink a bit less latte because your demand for latte is inelastic D. Return to Starbucks but drink a bit less latte because your demand for latte is elastic

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You've tried a few different lattes and prefer Starbucks. What would be your most likely response when the price of a latte has increased at all the coffee shops? A. Never return to Starbucks as punishment for being first to raise the price of a latte B. Return to Starbucks but drink a bit more latte because your demand for latte is elastic C. Return to Starbucks but drink a bit less latte because your demand for latte is inelastic D. Return to Starbucks but drink a bit less latte because your demand for latte is elastic

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D. Return to Starbucks but drink a bit less latte because your demand for latte is elastic<br /><br />When the price of a latte increases, if the demand for lattes is elastic, it means that consumers are more sensitive to price changes. In this case, you would likely reduce your consumption of lattes at Starbucks as a result of the price increase.

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