A successful advertising campaign induces consumers to buy more of a product at any given price than before.
Answer the following statement true (T) or false (F)
True
A successful advertising campaign is one that changes consumer tastes and creates brand loyalty, thereby shifting the demand curve for a specific product to the right.
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The average fixed cost curve
A) is always positively sloped. B) is U-shaped. C) has an upside-down U shape. D) is always negatively sloped. E) is horizontal.
Suppose a Japanese bank offers a 4 percent interest rate and U.S. banks offer a 2 percent interest rate. People must expect the yen to
A) depreciate by 2 percent. B) appreciate by 2 percent. C) depreciate by 6 percent. D) appreciate by 6 percent.
If, in a perfectly competitive industry, the market price facing a firm is above its average total cost at the output where marginal revenue equals marginal cost, then
A) new firms are attracted to the industry. B) existing firms will exit the industry. C) market supply will remain constant. D) firms are breaking even.
What is true of stock exchanges in the United States?
A. There are two major stock exchanges in New York, several smaller regional exchanges across the nation, and over-the-counter trading via NASDAQ. B. The New York Stock Exchange is the only stock exchange in the United States. C. There are only two stock exchanges, NYSE and AMEX. D. There are only three stock exchanges, NYSE, AMEX, and NASDAQ.