Which of the Following Is True of Advertising in the New

question 56

Multiple Choice

Which of the following is true of advertising in the new marketing communications model?

• A) Advertisers have replaced print catalogues with digital versions.
• B) Advertisers are increasingly shifting toward digital media.
• C) Advertisers are finding traditional media less expensive.
• D) Advertisers are spending more on broadcast advertising.
• E) Advertisers are using less targeted media to reach customers.

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.

Tax Revenues

The income received by the government from taxes imposed on individuals and businesses, used to fund government activities and public services.

Deadweight Loss

A decrease in economic efficiency arising when a good or service fails to attain or cannot possibly attain equilibrium.

Deadweight Losses

Economic inefficiencies that occur when equilibrium in a market is not achieved or when market allocation of resources is not optimal, often due to externalities or government intervention.