Is it likely that Starbucks would be the only coffee shop to raise its prices? Why? A. Yes, because its total revenue would rise. B. No, because its total revenue would fall. C. Yes, because it has a good reputation. D. No, because it would lose all its customers.

The correct answer is B. No, because its total revenue would fall.<br /><br />Explanation:<br /><br />A. This is not a likely scenario. If Starbucks raises its prices, it is likely that other coffee shops in the area would also raise their prices, as they would want to remain competitive. If Starbucks is the only coffee shop raising its prices, it would likely lose customers to other coffee shops that keep their prices the same.<br /><br />B. This is the correct answer. If Starbucks raises its prices and other coffee shops do not, Starbucks would likely lose customers to the other coffee shops. This would result in a decrease in Starbucks' total revenue.<br /><br />C. Starbucks' reputation is not the primary factor in determining whether it should raise its prices. While a good reputation can help a business, it does not necessarily mean that raising prices would be a good decision.<br /><br />D. This is not a likely scenario. While raising prices could potentially lead to a loss of customers, it is unlikely that all of Starbucks' customers would stop going there. Other factors, such as the quality of the coffee and the overall experience at Starbucks, would likely keep some customers loyal.