There is no true substitute for coffee. If the price goes from $8 to $12 for a package of k-cups due to a coffee bean shortage, demand will remain relatively unchanged. This is an example of demand elasticity.

Question

Quizplus · Accepted Answer

This is an example of inelastic demand, where the quantity demanded changes very little when the price changes, indicating that consumers are relatively insensitive to price changes for this product. Elastic demand would imply a significant change in quantity demanded with price changes.

There Is No True Substitute for Coffee