What will be the result of a successful advertising campaign?

Question

Quizplus · Accepted Answer

A successful advertising campaign will result in an increase in brand awareness and familiarity, which can make consumers less price-sensitive and thus make quantity demanded less sensitive to changes in price. This means that there is a higher likelihood of maintaining demand at a higher price point, resulting in increased profits. Option A is incorrect, as an increase in price elasticity of demand would mean that demand is becoming more sensitive to changes in price. Option C is also incorrect, as increased average costs would imply a decrease in profits, which is not a result of a successful advertising campaign. Option D is also incorrect, as a decrease in fixed costs may lead to an increase in profits, but this is not a direct result of a successful advertising campaign.

What Will Be the Result of a Successful Advertising Campaign