Tasty Treat Tea Demand Elasticity Analysis

The Effect of Price Change on Tasty Treat Tea Demand

Tasty Treat Tea is a popular iced tea drink. When the manufacturer begins to use imported tea leaves, the price rises by 10%, and the quantity demanded falls by 20%.

The Impact of Quantity Demanded Change

The fact that quantity demanded changed by more than the price change suggests that the demand for Tasty Treat Tea is elastic. Elastic demand means that the quantity demanded is highly responsive to price changes.

Possible Scenarios for Tasty Treat Tea Demand

There are several possibilities when quantity demanded changes more than the price:

• The consumer no longer prefers the iced tea drink.
• The demand for Tasty Treat Tea is elastic.
• The demand for Tasty Treat Tea is inelastic.
• The consumer no longer shops at Tasty Treat Tea.

What is elastic?

Elastic is a type of software that enables users to quickly and easily scale up or down their computing resources in order to meet their needs. It is a type of cloud computing platform which enables users to rapidly spin up and down resources on demand. Elastic allows users to dynamically scale their resources to meet the exact requirements of an application. It also allows users to take advantage of the economies of scale in cloud computing by pooling resources and paying for only what is needed. Elastic is a cost-effective and efficient way to handle the scalability of applications and services.