Refer to the Economics in Practice on page 358. Sometimes the lack of information in an advertisement serves as a signal.

Name: Refer to the Economics in Practice on page 358. Sometimes the lack of information in an advertisement serves as a signal.
Brand: Quizplus
Rating: 4.8 (46 reviews)

Question

Quizplus · Accepted Answer

Sometimes advertisers intentionally leave out information in their ads as a signal to consumers that the product is high quality. This is known as signaling theory in economics.

Refer to the Economics in Practice on Page 358