Suppose Starbucks currently charges $2.50 per cup for its latte
If Starbucks raises 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
C
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Using the Keynesian model, the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the long run
A) an increase; no change B) a decrease; no change C) an increase; an increase D) no change; a decrease
The poverty line:
a. separates those on welfare from those not on welfare. b. equals three times an economy food budget. c. equals the median income level. d. all of these.
In the long run, the economy is better off if policymakers exploit the short-run trad-eoff between inflation and the unemployment rate
a. True b. False Indicate whether the statement is true or false
The trading of votes by elected officials to secure favorable outcomes is called:
A. splitting the difference. B. social engineering. C. logrolling. D. grandstanding.