Question
Suppose you own a successful food truck business in Portland, Oregon. After a few years of operation, you decide to expand your business to other
Suppose you own a successful food truck business in Portland, Oregon. After a few years of operation, you decide to expand your business to other cities in Oregon. In order to start a new business, you would need to borrow $100,000 per city. The table below reports the estimated dollar return for five new locations.
Store | Expected return |
Bend | $20,000 |
Eugene | $16,000 |
Corvallis | $12,000 |
Newport | $8,000 |
Ashland | $4,000 |
On the graph below, first use the point tool to plot the points in your investment demand curve based on the table above. The y axis is the interest rate, and the x axis is the dollar amount you would want to borrow to invest in more food trucks. Then, once you have plotted the points, use the line tool to draw your investment demand curve, connecting the top and bottom points (draw one continuous line, rather than multiple discrete segments). To refer to the graphing tutorial for this question type, please click here.
Part 2(1point)
In which of the following cities will you operate a new food truck business if the interest rate is 7%? Choose one:A. Bend, Eugene, Corvallis B. Bend, Eugene C. Bend D. Bend, Eugene, Corvallis, Newport, Ashland E. Bend, Eugene, Corvallis, Newport
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