What can you infer If you observe a great deal more advertising for Mucinex, an over-the-counter drug, than for a Grainger drill press?

What can be concluded is the Advertising Elasticity of Demand is greater for Mucinex than for the Grainger Drill Press. Advertising Elasticity is the %Change in Quantity Demanded divided by the %change in Advertising. Advertising elasticity is a measure of the responsiveness of consumers to a change in advertising. When this responsiveness is large, advertising spending will be large.

It can also be inferred that Mucinex is in a larger market with many buyers and many sellers. The competition among the suppliers is very strong. Mucinex is a brand name that requires large amounts of advertising to maintain the brand image and set it apart from the competition. The market for drill presses is by comparison small and with fewer competitors and buyers. Advertising in this type of market is less effective in increasing the quantity demanded.