When You Redeem a 50-Cents-Off Coupon for Crest Toothpaste at Your

question 240

Multiple Choice

When you redeem a 50-cents-off coupon for Crest toothpaste at your local supermarket,you are being influenced primarily by which promotional element?

• A)advertising
• B)sales promotion
• C)public relations
• D)publicity
• E)personal selling

---

Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is unachievable.

Excess Burden

Excess Burden, also known as deadweight loss, is the cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium.

Nonneutral Tax

A tax that impacts differently on different types of economic activities, influencing the allocation of resources.

Perfectly Elastic

Describes a market situation where product demand or supply can vary greatly with a small change in price.