-When an oligopolistic firm advertises its products,its demand curve shifts rightward because
A) its products are now cheaper.
B) other firms also advertise their products.
C) customers may switch brands in favour of the advertised products.
D) new customers who did not previously use the products may now purchase the advertised products.
E) customers may switch brands in favour of the advertised products,and new customers who did not previously use the products may now purchase the advertised products.

Question

-When an oligopolistic firm advertises its products,its demand curve shifts rightward because
A) its products are now cheaper. 
B) other firms also advertise their products. 
C) customers may switch brands in favour of the advertised products. 
D) new customers who did not previously use the products may now purchase the advertised products. 
E) customers may switch brands in favour of the advertised products,and new customers who did not previously use the products may now purchase the advertised products.

Quizplus · Accepted Answer

Advertising can attract both existing customers from competitors and new customers, leading to an increase in demand for the advertised product.

-When an Oligopolistic Firm Advertises Its Products,its Demand Curve Shifts