Wonder Coffee is a chain of coffee serving outlets and specializes in selling different flavors of coffee.The increase in the price of sugar does not affect Wonder Coffee's coffee prices very much and sales continue at their usual level.Identify the type of demand in this scenario.

Question

Quizplus · Accepted Answer

Inelastic demand refers to a situation where the quantity demanded by consumers does not change significantly when the price of the product changes. In this case, the increase in the price of sugar does not significantly affect the price or sales of Wonder Coffee, indicating inelastic demand.

Wonder Coffee Is a Chain of Coffee Serving Outlets and Specializes