(Table: Demand for Cappuccinos at Charlie's Crazy Cappuccino House) Use Table: Demand for Cappuccinos at Charlie's Crazy Cappuccino House. Charlie's Crazy Cappuccino House is the only source of cappuccinos for hundreds of miles in any direction. Charlie currently sells two cappuccinos. If he lowers the price and sells three cappuccinos, the _____ effect will dominate the _____ effect, and total revenue will _____.
A) quantity; price; decrease
B) price; quantity; increase
C) price; quantity; decrease
D) quantity; price; increase
Correct Answer:
Verified
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