An Advertising Campaign for a Good That Succeeds in Changing

question 100

Multiple Choice

An advertising campaign for a good that succeeds in changing consumers' tastes and preferences will _____.

• A) shift the demand curve for the good to the right
• B) cause a movement along the demand curve for the good
• C) increase demand for a competitor's product
• D) make the demand for the good perfectly elastic

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Definitions:

Price Elasticity

A gauge for the reaction of demand for a product to variations in its cost.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price.

Price Elasticity

An indicator of the sensitivity in the quantity of a good demanded when its price fluctuates.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a given period.