Critics Claim That When Advertising Decreases the Elasticity of Demand,firms

question 89

Multiple Choice

Critics claim that when advertising decreases the elasticity of demand,firms are able to do which of the following

• A)increase their advertising budget
• B)lower their advertising budget
• C)charge a larger markup over marginal cost
• D)charge a smaller markup over marginal cost

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Definitions:

Facial Nerve

The seventh cranial nerve that controls the muscles of facial expression, taste sensations from the anterior two-thirds of the tongue, and the secretion of saliva and tears.

Vagus

Referring to the tenth cranial nerve (vagus nerve), which is part of the parasympathetic nervous system and controls functions of the heart, lungs, and digestive tract.

Ptosis

Falling down of an organ—for example, the drooping of the upper eyelid.

Oculomotor Nerve

The cranial nerve III, responsible for controlling a majority of eye movements, pupil constriction, and keeping the eyelid open.