Free response · 1.1 What Is a Business?

Question 3: Business Concept Application (3 points)

Bean & Brew is a 12-seat coffee shop that Mina opened near Lakeside High School. Before deciding on her hours and prices, Mina gathered evidence in two ways. First, she asked 120 Lakeside students a short survey outside the school. Second, she checked the public library's website and the school's published schedule and learned that the library closes at 6 p.m. and that most after-school activities end by 5:30 p.m. Figure 1 shows students' answers to the question "Where do you usually study after 6 p.m.?" Figure 2 shows how much students said they would pay for one drink if they could stay for two hours with wifi and power outlets. Figure 1. Where students study after 6 p.m. (n = 120): At home 55% · Nowhere, I stop studying 25% · A friend's house 12% · Other 8% Figure 2. Amount students would pay for one drink with a two-hour seat (n = 120): $3 — 40% · $4 — 35% · $5 — 20% · $6 or more — 5% A basic latte costs Mina $1.20 to make.