Use the following to answer question:
-(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 miles in any direction.Lenny is selling 2 cups of coffee.If he lowers the price and sells 3 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 question: 
-(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 miles in any direction.Lenny is selling 2 cups of coffee.If he lowers the price and sells 3 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

The quantity effect (selling more units) will dominate the price effect (lower price per unit), leading to an increase in total revenue.

Use the Following to Answer Question