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 which of the following is true?

A) The Law of Demand does not hold for Big City Java's grand mochas.
B) If a price of $10 is charged, the predicted weekly demand of grand mocha coffees is 639.75.
C) If a price of $5 is charged, the predicted weekly demand of grand mocha coffees is 573.75.
D) The horizontal intercept of the demand equation is 15.25.


C) If a price of $5 is charged, the predicted weekly demand of grand mocha coffees is 573.75.

Anthropology & Archaeology

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