Asked by Timothy DeKorver on Jun 12, 2024
Verified
A discount shoe manufacturer's advertisement suggests that they are almost as good as the name brands but better value.The shoe manufacturer believes that the advertisement will
A) Make the demand for its product more elastic
B) Make his customers more price sensitive
C) Cause people to directly compare his product to the name brands
D) All of the above
Name Brands
Brands that are widely recognized and generally perceived as indicative of quality and reliability.
- Fathom how advertising maneuvers impact the demand elasticity of merchandise.
Verified Answer
TF
Teresa FernandezJun 14, 2024
Final Answer :
D
Explanation :
By suggesting that their shoes are almost as good as the name brands but better value, the manufacturer is likely to make the demand for their product more price sensitive, as customers will directly compare their product to the name brands. These factors will increase price elasticity, making option D the best choice.
Learning Objectives
- Fathom how advertising maneuvers impact the demand elasticity of merchandise.
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