Market Conditions

Price elasticity of demand - cost of coffee beans?

 “Mocha Loca”, the brand new iced coffee that is to be sold in stores statewide. In the production of “Mocha Loca” the items that would affect the elasticity of price most likely would be the coffee beans. By requesting the needed demand of coffee beans, to make the iced coffee of “Mocha Loca”, then the price elasticity of demand for the coffee beans is unitary elastic. This meaning that unitary elasticity is, when there is an equally proportional change in demand, following a change in price. When the demand of coffee beans are high, this gives the price elasticity of demand a higher price of coffee beans, over the past year coffee beans priced have increased by a dollar. Coffee beans have this elasticity because no matter the increase of price, there will still be people buying the coffee beans.

Technological innovation think about a new type of coffee shop

Technology innovation is the manner through which new or improved technologies are developed and brought into well-known practice. Coffee Shops, are everywhere. Every corner you turn around there is some kind of coffee shop. A new technological innovation for coffee shops, there could be a “Mocha Loca” vending machines. They can be located in downtown areas. At these locations, you can have iced cold “Mocha Loca” coffee in seconds. The positive aspect of having “Mocha Loca” in vending machines, is that there would not be a long line to wait to get your coffee like you do at Starbucks. For morning routines you can swing by the vending machine put in your dollar or swipe your card and then here comes your morning caffeine in matter of seconds. There is no waiting and this vending machine will have your favorite flavors.