If Mary wants to use advertising to reduce the elasticity of demand for her dry cleaning services,she should make sure the advertising:
A) clearly states the prices she charges.
B) shows that she is producing a product like the other dry cleaners in town.
C) shows why her services are truly different from the other dry cleaners in town.
D) does none of the above.

Question

Quizplus · Accepted Answer

By showing why her services are truly different from the other dry cleaners in town, Mary can establish herself as having a unique value proposition that is worth paying more for. This helps to reduce the elasticity of demand by making customers less likely to switch to a cheaper competitor. Simply stating prices or showing that she produces a product like other dry cleaners in town is unlikely to be sufficient to achieve this goal.

If Mary Wants to Use Advertising to Reduce the Elasticity