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Mott's Used an Advertising Campaign to Change the Way Consumers

question 212

Multiple Choice

Mott's used an advertising campaign to change the way consumers thought about its applesauce from a dinnertime side dish to a replacement for cooking oil in baking.The advertising message was that using applesauce in baking cuts calories and makes the resulting baked good healthier.Mott's used a __________ strategy.


Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, such as labor or capital.

Marginal Physical Product

The additional output that is produced by employing one more unit of an input, holding other inputs constant.

Substitution Effect

The economic understanding that as prices rise, or income decreases, consumers will replace more expensive items with less costly alternatives.

Output Effect

The impact on total production and economic output resulting from changes in price levels, influencing the quantity supplied or demanded.

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