1. Do you think coffee is an elastic or inelastic good?  Use 2 of the determinants of elasticity that we learned about to justify your answer.  Do not use the time horizon, as it does not apply.
  2. Why is elasticity important? Why do we care if a good is elastic or inelastic?  How can this knowledge be applied in the real world?
  3. Reply to another student.


  1. You should write approximately 6 sentences and about 250 words. Please check your work for spelling and grammar errors to avoid a loss of points.