An advertiser hopes its promotion will make the demand for its products more elastic when the price increases.

Name: An advertiser hopes its promotion will make the demand for its products more elastic when the price increases.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Elastic demand means that consumers are more sensitive to price changes, so if the price increases, demand would decrease significantly. An advertiser typically aims to make demand more inelastic, so consumers are less sensitive to price increases.

An Advertiser Hopes Its Promotion Will Make the Demand for Its