If consumers are convinced by ads that Brand X has a lot more value than they originally thought, then the MU/P of X will decrease.

Name: If consumers are convinced by ads that Brand X has a lot more value than they originally thought, then the MU/P of X will decrease.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If consumers are convinced by ads that Brand X has a lot more value than they originally thought, their marginal utility (MU) for Brand X increases relative to its price (P), thus increasing the MU/P ratio, not decreasing it.

If Consumers Are Convinced by Ads That Brand X Has