If Starbucks is successful at luring away competitor's customers with its new health and wellness stores,what will be the effect on Starbucks' demand and marginal revenue curves?
A) They will both shift to the right.
B) They will both shift to the left.
C) Demand will shift to the left and marginal revenue will shift to the right.
D) Demand will shift to the right and marginal revenue will shift to the left.

Question

Quizplus · Accepted Answer

If Starbucks is successful at luring away competitor's customers with its new health and wellness stores, it means that the demand for Starbucks' products has increased. This will cause the demand curve to shift to the right. As a result, the marginal revenue curve will also shift to the right because marginal revenue is the change in total revenue resulting from a one-unit increase in sales.

If Starbucks Is Successful at Luring Away Competitor's Customers with Its