Two ways that effective advertising affects a company's demand are by _____ the demand for the company's product and the _____ of that product.
A)increasing; inelasticity
B)increasing; elasticity
C)decreasing; inelasticity
D)decreasing; elasticity

Question

Quizplus · Accepted Answer

Effective advertising can increase the demand for a company's product by making it more desirable to consumers and can also increase the inelasticity of demand for that product, meaning consumers are less sensitive to price changes.

Two Ways That Effective Advertising Affects a Company's Demand Are