When a company spends money for television commercials it intends to shift the _____

a. supply curve to the right and make supply more elastic.

b. demand curve to the right and make demand more elastic.

c. supply curve to the right and make supply less elastic.

d. demand curve to the right and make demand less elastic.

The correct answer to the given question is option d. demand curve to the right and make demand less elastic.

When a company spends money for television commercials, it promotes the products manufactured by it. Due to promotions, the consumers tend to purchase more of the product. This leads to a shift in the demand curve to the right thereby leading to an increase in the equilibrium price. Moreover, the demand also becomes more elastic as a little increase in price will hardly lead to a decrease in the quantity demanded.

The supply curve for the products will not affected in the given case as the money spent for television commercials will boost only the demand.