Suppose Starbucks currently charges $3.25 per cup for its latte
If Starbucks lowers the price to $3.00 per cup, based on the demand curve in the figure above, its total revenue will ________ because the demand for Starbucks latte is ________ over this price range.
A) increase; elastic
B) decrease; elastic
C) increase; inelastic
D) increase; unit elastic
E) not change; unit elastic
A
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Financial institutions for the poor have been neglected because
a. large banks considered rural branches to be unprofitable b. economists and others believed that poor people were unable to save c. the poor often save in non-monetary forms d. small farmers and business people were considered to be untrustworthy borrowers e. all of the above
Using the specific factors model, assume that strawberry production requires the specific factor of land, tractor production requires the specific factor of capital, and labor is variable
If the United States is capital abundant compared to Mexico, and Mexico is land abundant compared to the United States, then in the short run with trade we would expect A) the income of U.S. land owners to increase. B) the income of U.S. workers to increase. C) the income of Mexican workers to increase. D) the income of Mexican land owners to increase.
In an economy in which velocity is constant and real output grows at an average rate of 3 percent per year, a 5 percent average rate of growth in the money supply would result in a
a. constant price level. b. low (approximately 2 percent) rate of inflation. c. decline in the general level of prices at an annual rate of approximately 2 percent. d. rate of inflation of approximately 8 percent.
In the Solow model, if f(k) = 6k0.5, s = 0.1, n = 0.1, and d = 0.2, what is the value of c at equilibrium?
A. 10 B. 11.2 C. 10.8 D. 10.4