If Starbucks is successful at luring away competitors' customers with its chain of health and wellness stores,what will be the effect on Starbucks' demand and marginal revenue curves?
A)They will both shift to the right.
B)They will both shift to the left.
C)Demand will shift to the left and marginal revenue will not change.
D)Demand will shift to the right and marginal revenue will not change.

Question

Quizplus · Accepted Answer

If Starbucks successfully attracts competitors' customers, its demand curve will shift to the right due to increased demand for its products. Consequently, the marginal revenue curve will also shift to the right as it is derived from the demand curve.

If Starbucks Is Successful at Luring Away Competitors' Customers with Its