If Advertising Exposure, Disposable Income and Price Affect Demand for a Product

question 1

Multiple Choice

If advertising exposure, disposable income and price affect demand for a product, and advertising exposure affects the price of the product, what type of relationship is not present?

• A) A direct causal effect of advertising exposure on product demand
• B) A direct causal effect of advertising exposure on product prices
• C) An indirect causal effect of disposable income on product demand
• D) A direct causal effect of product prices on product demand

---

Definitions:

Tax Accounting

A system of accounting methods and principles focused on taxes rather than the appearance of public financial statements, governing how a company reports its income and expenses for tax purposes.

Consolidated Income Tax Return

A consolidated income tax return is filed by a corporate group that combines the tax liabilities and incomes of all the entities within the group, allowing them to file as a single entity.

Intra-entity Transfers

Transactions of goods, services, or resources between divisions, departments, or affiliates within the same legal entity.

Voting Stock

Shares that give the holder the right to vote on company matters, such as electing the board of directors or other corporate policies.