If a successful advertising campaign increases brand loyalty,the
A)Supply of the advertised good will become less elastic.
B)Demand for the advertised good will become less elastic.
C)Supply of substitutes for the advertised good will increase.

Question

Quizplus · Accepted Answer

A successful advertising campaign can increase the perceived value of a brand, therefore creating a stronger demand for the advertised good. This increased demand makes the demand curve less elastic, meaning that consumers are less responsive to changes in price. The supply of the advertised good and its substitutes are not directly affected by an increase in brand loyalty.

If a Successful Advertising Campaign Increases Brand Loyalty,the