The ABC Computer Company Spends a Lot of Money for Advertising

question 111

Multiple Choice

The ABC Computer Company spends a lot of money for advertising designed to convince you that their personal computers are superior to all other personal computers. If the ABC Company is successful, the demand for ABC personal computers

• A) and the demand for other firmsʹ personal computers will become less price elastic.
• B) and the demand for other firmsʹ personal computers will become more price elastic.
• C) will become more price elastic, but the demand for other firmsʹ personal computers will become less price elastic.
• D) will become less price elastic, but the demand for other firmsʹ personal computers will become more price elastic.

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Definitions:

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