Author Question: The authors note that advertising can make the consumer demand for a product more elastic (price ... (Read 64 times)

chandani

  • Hero Member
  • *****
  • Posts: 541
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

  • Sr. Member
  • ****
  • Posts: 284
Answer to Question 1

B

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Your heart beats over 36 million times a year.

For a complete list of videos, visit our video library