A successful advertising campaign is most likely to:
A)increase the price elasticity of demand by stressing upon the uniqueness of the product.
B)reduce the price elasticity of demand by stressing upon the uniqueness of the product.
C)reduce the price elasticity of demand by informing consumers about the availability of substitutes.
D)have no effect on the demand curve.
E)make the demand curve shift inward.

Question

A successful advertising campaign is most likely to:​
A)increase the price elasticity of demand by stressing upon the uniqueness of the product.
B)reduce the price elasticity of demand by stressing upon the uniqueness of the product.
C)reduce the price elasticity of demand by informing consumers about the availability of substitutes.
D)have no effect on the demand curve.
E)make the demand curve shift inward.

Quizplus · Accepted Answer

A successful advertising campaign that stresses upon the uniqueness of the product can create a perception of the product being superior, premium or different from other substitutes in the market. This can reduce the price elasticity of demand, making consumers less sensitive to changes in price and more likely to purchase the product even if it's priced higher than substitutes.

A Successful Advertising Campaign Is Most Likely To:​

A Successful Advertising Campaign Is Most Likely To: