Effects of advertising on the demand curve, Microeconomics

The Effects of Advertising on the Demand Curve:

Advertising targets to:

Change the slope of the demand curve which means make it more inelastic. This is done by generating the brand loyalty;

Shift the demand curve to the right by tempting the people’s requirement for that particular product.

If the response of income elasticity of demand is positive, the commodity is normal and if sign is negative, the commodity is inferior.

Posted Date: 7/19/2012 4:07:00 AM | Location : United States







Related Discussions:- Effects of advertising on the demand curve, Assignment Help, Ask Question on Effects of advertising on the demand curve, Get Answer, Expert's Help, Effects of advertising on the demand curve Discussions

Write discussion on Effects of advertising on the demand curve
Your posts are moderated
Related Questions
Question 1: (a) Using examples, explain how the theory of Purchasing Power Parity conforms to the Law of One Price. (b) According to you, how best does the Theory of Purchasing


1. Explain externality, how can government intervene to achieve allocative efficiency in case of external cost or external benefit? 2. Explain oligopoly's structure and use game t

How is the wrong conclusion result in necessary condition not in the sufficient condition? This is often heard that the market institution must not be used based onto the fact

Elastic and Inelastic Demand can be understood as follows: Slope and elasticity of demand have an inverse relationship between them. When slope is high elasticity of demand bec

How we constract the cost structure of firms

what is externalities and market inefficiency


Q. Describe pay-as-you-go pension plan? Pay-As-You-Go Pension: A pay-as-you-go pension plan sponsor basically just pays for pension benefits to retired plan members out of its

When Stockwell Day was leader of the Canadian Alliance Party (which soon became the new Conservative Party) he wrote that "the national debt is mortgaging our children's future." A