Refer to the figure below. Suppose this demand curve shows the demand for lattes at a single coffee shop that charges $2.00 for a latte. If the manager wants to increase total revenue, what should the manager do?
A)Increase the price from $2.00 to $3.00.
B)Increase the price from $2.00 to $2.50.
C)Reduce the price from $2.00 to $1.00.
D)Reduce the price from $2.00 to $1.75.

Question

Refer to the figure below. Suppose this demand curve shows the demand for lattes at a single coffee shop that charges $2.00 for a latte. If the manager wants to increase total revenue, what should the manager do? 
A)Increase the price from $2.00 to $3.00. 
B)Increase the price from $2.00 to $2.50. 
C)Reduce the price from $2.00 to $1.00. 
D)Reduce the price from $2.00 to $1.75.

Quizplus · Accepted Answer

The Answer of Refer to the figure below. Suppose this demand curve shows the demand for lattes at a single coffee shop that charges $2.00 for a latte. If the manager wants to increase total revenue, what should the manager do? 
A)Increase the price from $2.00 to $3.00. 
B)Increase the price from $2.00 to $2.50. 
C)Reduce the price from $2.00 to $1.00. 
D)Reduce the price from $2.00 to $1.75.

Refer to the Figure Below