Use the following to answer questions : $$\begin{array}{l}
\text { Table: Demand for Lenny's Coffee }\
\begin{array} { c c }
\hline \begin{array} { l }
\text { Price } \
\text { of Coffee } \
\text { (per cup) }
\end{array} & \begin{array} { c }
\text { Quantity } \
\text { of Coffee } \
\text { Sold (daily cups) }
\end{array} \
\hline \$ 10 & 0 \
9 & 1 \
8 & 2 \
7 & 3 \
6 & 4 \
5 & 5 \
4 & 6 \
3 & 7 \
2 & 8 \
1 & 9 \
0 & 10 \
\hline
\end{array}
\end{array}$$
-(Table: Demand for Lenny's Coffee)Use Table: Demand for Lenny's Coffee.Lenny's Café is the only source of coffee for hundreds of kilometres in any direction.Lenny is selling 2two cups of coffee.If he lowers the price and sells three3 cups of coffee,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

Question

Use the following to answer questions : $$\begin{array}{l}
\text { Table: Demand for Lenny's Coffee }\
\begin{array} { c c } 
\hline \begin{array} { l } 
\text { Price } \
\text { of Coffee } \
\text { (per cup) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { of Coffee } \
\text { Sold (daily cups) }
\end{array} \
\hline \$ 10 & 0 \
9 & 1 \
8 & 2 \
7 & 3 \
6 & 4 \
5 & 5 \
4 & 6 \
3 & 7 \
2 & 8 \
1 & 9 \
0 & 10 \
\hline
\end{array}
\end{array}$$
-(Table: Demand for Lenny's Coffee)Use Table: Demand for Lenny's Coffee.Lenny's Café is the only source of coffee for hundreds of kilometres in any direction.Lenny is selling 2two cups of coffee.If he lowers the price and sells three3 cups of coffee,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

Quizplus · Accepted Answer

When Lenny lowers the price from $8 to $7, he sells one more cup of coffee (from 2 to 3 cups). The quantity effect (selling more cups) dominates the price effect (lower price per cup), leading to an increase in total revenue from $16 to $21.

Use the Following to Answer Questions -(Table: Demand for Lenny's Coffee)Use Table: Demand for Lenny's Coffee