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:

Standard Return

The typical or average return expected from an investment, benchmarked against similar investments or industry standards.

Investment

Investment refers to the use of capital to purchase assets with the potential to generate returns in the form of income, dividends, or capital gains.

Risk Premium

The excess return that an investment is expected to yield over a risk-free rate as compensation for its higher risk.

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