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
Stock of durable goods on hand: If the economy has enjoyed an extended period of prosperity, consumers may find themselves well supplied with various durable goods, e.g. cars,

What is Hicksian demand function? Hicksian Demand Function: The solution of expenditure function that is the function of (p, u) is denoted by h(p, u) and termed as the Hicks

What are the possible advantages of free trade? Firms a)  Specialisation and enhanced use of comparative advantage b)  Possibility of advantages of scale c)  Spread

Suppose you own a home remodeling company. You are currently earning short-run profits. The home remodeling industry is an increasing-cost industry. In the long run, what do you ex


How much would the price of Good Z (Pz) have to change in order to increase the consumption of Good C by twenty five percent (25%)?

demand elasticity

During summer of 2006, China increased their reserve requirement for the banking system while maintaining a fixed target for the interbank lending interest rate. Draw a graph of th

I would tend to think that a 5% per year goal is more reasonable. Smaller incremental goals always appear to be more attainable, while more radical goals may actually be more diffi

Smoking cigarettes is a leading cause of many diseases