List three reasons why demand for a product will often increase ...

[dalyningkenk]

List three reasons why demand for a product will often increase if the product is endorsed by a celebrity.
 
  What will be an ideal response?

Question 2

Arbitrage refers to the act of
 
  A) buying a product in one market at a low price and reselling in another market at a higher price.
  B) suing a producer for illegal business practices.
  C) trading in the foreign exchange market.
  D) resolving a dispute in front of an arbitrator instead of a court of law.

[Juro]

Answer to Question 1

1. Consumers may believe that the celebrity is particularly knowledgeable about the product.
2. Buying the product may make people feel closer to the celebrity.
3. Buying the product may make people feel fashionable.

Answer to Question 2

A