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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 Qd = 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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