Answer: a. the servers thinks demand for drinks and food is elastic.
Explanation:
Elastic demand is an economic concept that refers to the effect price has over the amount of a product consumers are willing to buy.
The law of demand affirms that the amount of purchases has an inverse relationship with the price, meaning that if prices rise, people won´t buy as much. The elasticity of demand allows us to estimate how much the purchases will decrease if the price increases, and vice-versa.