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In 2004, the Wall Street Journal reported that Starbucks was set to raise some of its prices. The article stated that unlike Starbucks, “mass-market grocery brands such as Kraft Foods Inc.’s Folgers and Maxwell House coffees tend to be much more price-elastic.” Which of the following best explains the implications of this quotation?a. When Starbucks raises prices, it causes sales of Folgers and Maxwell House to rise a lot. b. When Starbucks raises prices, it causes sales of Folgers and Maxwell House to fall a lot. c. When the price of Folgers or Maxwell House coffee rises, consumers buy only slightly less. d. When the price of Folgers or Maxwell House coffee rises, consumers buy a lot less.
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