Answer:
It should price the espresso at $1.25
Explanation:
![\left[\begin{array}{ccccc}&D1&D2&D3&D4\\$Sales Price&1&1.25&1.5&1.75\\$Variable Cost&0.25&0.25&0.25&0.25\\$Margin&0.75&1&1.25&1.5\\$Quantity&9,000&8,000&6,000&4,000\\$Contribution&6,750&8,000&7500&6,000\\$Fixed Cost&3,000&3,000&3,000&3,000\\$Income&3,750&5,000&4,500&3,000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccccc%7D%26D1%26D2%26D3%26D4%5C%5C%24Sales%20Price%261%261.25%261.5%261.75%5C%5C%24Variable%20Cost%260.25%260.25%260.25%260.25%5C%5C%24Margin%260.75%261%261.25%261.5%5C%5C%24Quantity%269%2C000%268%2C000%266%2C000%264%2C000%5C%5C%24Contribution%266%2C750%268%2C000%267500%266%2C000%5C%5C%24Fixed%20Cost%263%2C000%263%2C000%263%2C000%263%2C000%5C%5C%24Income%263%2C750%265%2C000%264%2C500%263%2C000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
The best Income is generated at the price of 1.25 dollar
Therefore, this is the amount to Specialty Coffees set for espresso.
I’m pretty sure the answer to your question is a
<span>If the MPC is 0.70 and investment increases by $3 billion, the equilibrium GDP will increase by $10 billion.
The GDP is the Gross Domestic Product and the MPC is the marginal propensity to consume. The MPC tracks that a raise in pay will increase consumers spending on goods and services. If there is an increase in spending budget, then the GDP will increase because of more spending power.
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