question archive Advertising is designed to: a
Advertising is designed to: a
Subject:EconomicsPrice:2.88 Bought3
Advertising is designed to:
a. cause the income elasticity of consumers to become zero.
b. decrease the price elasticity of demand for the industry but have no effect on the firm's demand.
c. increase the price elasticity of demand for the industry and shift the firm's demand curve rightward.
d. decrease the price elasticity of demand for the firm and shift the firm's demand curve rightward.
e. increase the price elasticity of demand for the firm and shift the firm's demand curve rightward.
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
The correct answer is d. decrease the price elasticity of demand for the firm and shift the firm's demand curve rightward.
Advertising increases brand loyalty. This causes elasticity to decrease. New people are attracted to the product causing the demand curve to shift to the right.
