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:

Absolute Advantage

The ability of an individual, company, or nation to produce a good or service more efficiently than competitors, using the same amount of resources.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than its competitors, underpinning international trade benefits.

Computers

Electronic devices capable of processing, storing, and communicating information according to a set of instructions called programs.

Comparative Advantage

The capability of a nation, person, corporation, or area to generate a product or service with a lesser opportunity cost compared to rivals.