Which of the Following Best Describes the Influence of Successful

question 35

Multiple Choice

Which of the following best describes the influence of successful advertising on the market for aspirin?

• A)The market demand curve shifts to the right, creating a shortage at the original equilibrium price.
• B)Individuals' demand curves shift to the right, but the market demand curve remains at its original position.
• C)The market supply curve shifts to the right, creating a surplus at the original equilibrium price.
• D)The market supply curve for aspirin shifts to the right, causing equilibrium price to decrease.

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Definitions:

Independence of Irrelevant Alternatives

A principle in decision theory stating that the preference between two options should not change because of the introduction of new alternatives.

Median Voter

A theoretical concept that suggests the outcome of a majority vote is most likely to represent the preferences of the voter who is in the middle of the political spectrum.

Majority Rule

A decision rule that selects alternatives which have a majority, that is, more than half the votes.

Median Voter Theorem

A political science theory suggesting that the outcome of a majority-vote election is most likely to represent the preferences of the median voter.