Use the figure below to answer the following questions.
Table 3.5.2
-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.The new equilibrium price is $ _______, and the new equilibrium quantity is _______ cups a day.

Question

Use the figure below to answer the following questions.
Table 3.5.2 
-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.The new equilibrium price is $ _______, and the new equilibrium quantity is _______ cups a day.

Quizplus · Accepted Answer

According to the law of demand, when the price of a good decreases, the quantity demanded will increase. In this case, the quantity demanded at each price doubles, causing a shift in the demand curve to the right. As a result, the new equilibrium price will increase, and the new equilibrium quantity will increase. Looking at the graph, we can see that the new equilibrium point is at a price of $1.30 and a quantity of 1,200 cups a day, which is closest to option D.

Use the Figure Below to Answer the Following Questions