When advertising enhances the ability of markets to allocate resources,it is most likely:
A) manipulating people's tastes.
B) increasing the brand loyalty of existing customers.
C) advertising about the existence of new products.
D) addressing psychological, rather than informational, characteristics of a good.

Question

Quizplus · Accepted Answer

Advertising about the existence of new products can increase the overall information available to consumers, allowing them to make more informed decisions and ultimately allocate resources more efficiently. This type of advertising is focused on providing informational characteristics of a good, rather than manipulating people's tastes or increasing brand loyalty.

When Advertising Enhances the Ability of Markets to Allocate Resources,it