A purpose of advertising is to make the:
A. demand for one's product less inelastic.
B. supply for one's product less elastic.
C. market closer to perfectly competitive.
D. demand for one's product more inelastic.
Answer: D
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Which one of the following is NOT a part of the M1 definition of money?
A) paper currency (i.e., Federal Reserve notes) B) coins C) savings accounts D) checkable and debitable accounts
A potential negative effect of advertising for society is that it can:
A. be self-canceling and contribute to economic inefficiency. B. lower barriers to entry and undermine profits in the industry. C. reduce mutual interdependence and increase competition. D. be the major cause of price wars among firms in the industry.
Goods A and B are substitutes. If the price of good A falls, the marginal revenue product (MRP) curve of good B
A. will become more inelastic. B. will shift in. C. will not change. D. will shift out.
The only real difference between what a scalper does and what a broker does is that
A. what a scalper does is legal in places where what a broker does is not. B. what a broker does is legal in places where what a scalper does is not. C. scalping is only selling tickets whereas brokering involves both buying and selling. D. brokering is only selling tickets whereas scalping involves both buying and selling.