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Which of the Following Is Not Put Forth as a Criticism

Question 59

Multiple Choice

Which of the following is not put forth as a criticism of advertising and brand names?


A) Advertising manipulates people's tastes to create a desire that otherwise would not exist.
B) Advertising increases competition, which causes unnecessary bankruptcies and layoffs.
C) Advertising increases brand loyalty, causes demand to be more inelastic and, thus, increases mark-up over marginal cost.
D) Brand names cause consumers to perceive differences between goods that do not exist.
E) Brand names are only relevant to high-priced products and so exclude other types of products

Correct Answer:

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