The authors note that advertising can make the consumer demand ...

[chandani]

The authors note that advertising can make the consumer demand for a product more elastic (price responsive) by expanding the potential range of consumers.
 
  As this change in demand occurs (ceteris paribus), what happens to the optimal advertising-sales ratio? A) Increases
  B) Decreases
  C) Remains the same
  D) We do not have enough information to answer this question

Question 2

Due to capacity constraints, the price elasticity of supply for most products is:
 
  A) the same in the long run and the short run.
  B) greater in the long run than the short run.
  C) greater in the short run than in the long run.
  D) too uncertain to be estimated.

[Zebsrer]

Answer to Question 1

B

Answer to Question 2

B