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Refer to the Accompanying Figure

Question 28

Multiple Choice

Refer to the accompanying figure. 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? Refer to the accompanying figure. 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.


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.

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