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Part 1
Read Eye on Elasticity At The Coffee Shop in the eText or click on the icon LOADING... to open a copy. Now use the following data about Elle's Espressos Bar to work the problem;
When Elle's Espresso Bar raised its prices by 10 percent, the quantity of coffee that Elle's sold fell by 40 percent. When Elle's and its competitors cut their prices by 10 percent, the quantity of coffee sold by Elle's increased by only 4 percent.
Calculate the price elasticity of demand for Elle's coffee and the price elasticity of demand for coffee.
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Part 1
The price elasticity of demand for Elle's Espresso Bar coffee is
  
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