Suppose you are contemplating whether you should open a new coffee shop near Concordia's Hall building. From studies published by Tim Hortons, suppose the average own-price elasticity of demand for coffee is -0.2 for all of its stores in Canada. You applied for and were subsequently hired as a part-time cashier at Tim Hortons in the Guy-Concordia metro station because you want to gather information. You notice that on an average day, Tim sells 120 12-ounce cups of regular coffee at the price of $3. Based on this information and assuming that the demand takes on a linear "point-slope" functional form, you believe that the demand for regular coffee is likely to be _____________.

a.

P = 3.75 - 0.2Q

b.

P = 18 - 0.125Q

c.

P = 963 - 8Q

d.

None of the answers above is correct.