If advertising were used to strengthen brand loyalty, you would expect:
a. demand for the product to become more elastic
b. consumers to become less sensitive to price differences among similar goods.
c. firms to lower price in order to increase revenue.
d. that consumer demand for related products would be unaffected.
b
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. If a firms fixed costs increase from $2,000 to $3,000, then its marginal cost is $1,000. 2. If a firm can sell one more unit of its product for $7 and the marginal cost of producing that one more unit is only $5, then it should definitely produce and sell one more unit.
The gap in GDP between the United States and Europe can be explained by the fact that
A) income taxes are higher in the United States. B) prices are higher in the United States. C) equilibrium employment is higher in Europe. D) the Okun Gap is larger in the United States. E) U.S. labor is more productive than European labor.
One of the major issues that arose during the Doha round of negotiations involved complaints by ________ about ________
A) developing countries; agricultural subsidies. B) manufacturers; intellectual property C) industrialized countries; enforcement of contracts D) Eastern European countries; European Union tariffs E) South and Central American countries; domestic content requirements
Suppose that national saving is $1456 billion, investment is $1945 billion, and private saving is $1590 billion. How much is the current account balance?
A) $489 billion B) $221 billion C) -$221 billion D) -$489 billion