Big City Java Is a Local Coffee Bar

question 75

Multiple Choice

Big City Java is a local coffee bar. Using Excel, the manager of Big City Java estimates the weekly demand function for their grand mocha coffees to be Q^d = 650 - (15.25 × P) . The estimated regression equation suggests that if Big City Java decreased its price of grana mocha coffees from $7.50 to $5.50, the predicted quantity demanded of coffees would________ .

• A)decrease by 30.5
• B)exactly double
• C)not change
• D)increase by 30.5

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Definitions:

Discount

A reduction in the price of goods or services offered by a seller, or the amount by which a bond is sold below its par value.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

Statement

A formal account or declaration of financial position or transactions, or a declaration of facts or opinions.

Company

A legal entity formed by individuals, stockholders, or shareholders, with the purpose of operating for profit, engaging in commercial and industrial activities.