If an economic justification for advertising is that it enhances the ability of a market to allocate resources, then advertising is probably:

Question

Quizplus · Accepted Answer

Advertising can inform consumers about new products, prices, and locations of retail outlets, which in turn improves the market's ability to allocate resources efficiently. Manipulating people's tastes (A) and addressing psychological characteristics of the good (D) may not necessarily lead to efficient resource allocation. Increasing elasticity of supply (B) can be a result of advertising, but it is not necessarily the primary economic justification for advertising.

If an Economic Justification for Advertising Is That It Enhances