The authors note that advertising can make the consumer demand for a product more elastic (price responsive) by expanding the potential range of consumers. As this change in demand occurs (ceteris paribus), what happens to the optimal advertising-sales ratio?
A) Increases
B) Decreases
C) Remains the same
D) We do not have enough information to answer this question

Question

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The Answer of The authors note that advertising can make the consumer demand for a product more elastic (price responsive) by expanding the potential range of consumers. As this change in demand occurs (ceteris paribus), what happens to the optimal advertising-sales ratio?
A) Increases
B) Decreases
C) Remains the same
D) We do not have enough information to answer this question

The Authors Note That Advertising Can Make the Consumer Demand