Refer to the Passage Below to Answer the Questions That

question 123

Essay

Refer to the passage below to answer the questions that follow.
Dell Computers has dramatically increased its consumer advertising in the past five years, which has resulted in Dell becoming the top-selling personal computer. Consumers can purchase a Dell computer only directly from Dell, either by calling the toll-free number or visiting Dell's website. One of Dell's popular television commercials included Steve, a young man who would usually say, "Dude, you're gettin' a Dell." Audiences really liked Steve and the ads he appeared in, and in fact, that's when Dell's sales started to skyrocket. However, Dell has stopped that campaign and has moved on to others.
-Dell discontinued the "Dude, you're gettin' a Dell" campaign because the company felt it had "run its course." Really, it was discontinued because it wasn't effective anymore and tests showed that consumers were getting rather irritated with Steve. Explain why this can be.

---

Definitions:

Demand Curve

A visual chart that shows how the quantity of a product demanded by buyers varies with its price.

Producer Surplus

The variance between the acceptable selling price for producers of a good or service and the real earnings they secure.

New Producers

Fresh entrants in a market that introduce additional capacity, innovation, or competition.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity supplied for a given period.