When demand for goods and services is stimulated by advertising, the economic system of the country benefits by

Question

Quizplus · Accepted Answer

When demand for goods and services is stimulated by advertising, it typically leads to an increase in sales and revenue for businesses, which in turn contributes to an increase in the gross domestic product (GDP) of a country. This can lead to economic growth and job creation, among other benefits. While advertising can also increase brand loyalty, this is not necessarily a direct economic benefit, and the other options presented (increased inelasticity of demand and reducing the amount of money needed to compete) do not seem to reflect the most significant economic effects of advertising.

When Demand for Goods and Services Is Stimulated by Advertising