Use the Figure Below to Answer the Following Questions

question 134

Multiple Choice

Use the figure below to answer the following questions.
Table 3.5.2
Demand and Supply Schedules for Cups of Coffee each day at CoolU

-Refer to Table 3.5.2.Professor Hyper publishes a new study,showing that coffee raises the test performance of students.Students double their demand for coffee and the quantity of coffee demanded at each price doubles.In addition,a premature frost destroys half the coffee trees and the supply of coffee is cut in half.The new equilibrium price is $________ and the new equilibrium quantity is ________ cups a day.

• A)1.10;400
• B)1.10;1,600
• C)1.10;800
• D)1.50;800
• E)1.50;400.

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Definitions:

Value Of Time

The economic worth assigned to time, reflecting what is foregone in engaging in a particular activity versus alternative uses.

Scarce Resources

Economic concept describing materials or services in limited availability relative to desired uses, necessitating allocation.

Efficient

In economic terms, relates to an allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.

Opportunity Cost

Opportunity cost represents the value of the best alternative forgone when a decision is made to choose one option over another.