Consider the CEO of a company that sells coffee at small free standing shops around the country. The Board of Directors is considering increasing the number of locations in an effort to increase total revenue, ceteris paribus. Use the data to determine if revenue is responsive to the number of locations. Use the midpoint method to calculate percentages. 2013 3750 2012 Number of locations 3000 Total revenue S80 million $100 million Calculate the percentage change in locations. percentage change in total revenue: Calculate the percentage change in total revenue. percentage change in locations: Based on the CEO's analysis, he reports to the Board that O total revenue is elastic with respect to the number of locations. total revenue is unit elastic with respect to the number of locations. O total revenue is inelastic with respect to the number of locations.

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