A business owner spends on advertising with the intent that it will affect the demand for the company's product in what two ways?
A)by decreasing the company's demand and making its demand more elastic
B)by decreasing the company's demand and making its demand more inelastic
C)by increasing the company's demand and making its demand more elastic
D)by increasing the company's demand and making its demand more inelastic

Question

Quizplus · Accepted Answer

Advertising is done to increase the demand for a company's product. If the advertising is successful, it will increase the demand for the product and make it more inelastic, which means that consumers are willing to pay any price for it. This is because they perceive the product as being of higher quality or more desirable than other options.

A Business Owner Spends on Advertising with the Intent That