The two models that are commonly used to explain the relationship between advertising and sales are the:
A)concave-downward function and the S-shaped response function.
B)S-shaped response function and the concave-upward function.
C)marginal utility function and the S-shaped demand function.
D)S-shaped demand function and the convex-downward function.
E)concave-upward function and the S-shaped demand function.

Question

Quizplus · Accepted Answer

The concave-downward function and the S-shaped response function are commonly used to describe how advertising impacts sales, with the former suggesting diminishing returns and the latter indicating initial low returns, followed by a period of increasing returns, and finally diminishing returns again.

The Two Models That Are Commonly Used to Explain the Relationship