Starbucks just hired you to determine whether your city could support a new starbucks coffee shop. there are currently two starbucks coffee shops in the city, and each has just enough customers to survive. the average household income in the city is expected to increase by 20 percent per year for the next 20 years. suppose the income elasticity for starbucks coffee products is 1.25 and the population is assumed to be constant.

In canada, the reference base period for the cpi is 2002. by 2012, prices had risen by 21.6 percent since the base period. the inflation rate in canada in 2013 was 1.1 percent. calculate the cpi in canada in 2013. hint: use the information that “prices had risen by 21.6 percent since the base period” to find the cpi in 2012. use the inflation rate formula (inflation is the growth rate of the cpi) to find cpi in 2013, knowing the cpi in 2012 and the inflation rate. the cpi in canada in 2013 is round up your answer to the first decimal. 122.9 130.7 119.6 110.5