(Table: Demand for Lenny's Coffee) Look at the table Demand for Lenny's Coffee.Lenny's Café is the only source of coffee for hundreds of miles in any direction.Lenny is selling two cups of coffee.If he wishes to lower the price and sell three cups of coffee, the:
A.quantity effect will dominate the price effect, and total revenue will decrease.
B.price effect will dominate the quantity effect, and total revenue will increase.
C.price effect will dominate the quantity effect, and total revenue will decrease.
D.quantity effect will dominate the price effect, and total revenue will increase.

Question

(Table: Demand for Lenny's Coffee) Look at the table Demand for Lenny's Coffee.Lenny's Café is the only source of coffee for hundreds of miles in any direction.Lenny is selling two cups of coffee.If he wishes to lower the price and sell three cups of coffee, the: 
A.quantity effect will dominate the price effect, and total revenue will decrease.
B.price effect will dominate the quantity effect, and total revenue will increase.
C.price effect will dominate the quantity effect, and total revenue will decrease.
D.quantity effect will dominate the price effect, and total revenue will increase.

Quizplus · Accepted Answer

The Answer of   (Table: Demand for Lenny's Coffee) Look at the table Demand for Lenny's Coffee.Lenny's Café is the only source of coffee for hundreds of miles in any direction.Lenny is selling two cups of coffee.If he wishes to lower the price and sell three cups of coffee, the: 
A.quantity effect will dominate the price effect, and total revenue will decrease.
B.price effect will dominate the quantity effect, and total revenue will increase.
C.price effect will dominate the quantity effect, and total revenue will decrease.
D.quantity effect will dominate the price effect, and total revenue will increase.

(Table: Demand for Lenny's Coffee) Look at the Table Demand