Asked by Horacio Nicolas on Jul 09, 2024

verifed

Verified

Advertisers go to great lengths to build brand loyalty because

A) it makes their product more elastic.
B) it makes their product more inelastic.
C) it shifts its supply curve to the right.
D) it shifts its demand curve to the left.

Brand Loyalty

The tendency of consumers to continuously purchase products from the same brand due to satisfaction, preference, or perceived superiority.

Elastic

A description of a situation where the demand or supply for a good or service significantly changes in response to a change in price.

Inelastic

Describes a situation where the demand or supply for a product does not change significantly when the price of the product changes.

  • Explain the role of advertising in influencing demand elasticity
verifed

Verified Answer

MM
MIHAILEY MILLERJul 11, 2024
Final Answer :
B
Explanation :
Brand loyalty makes the product more inelastic meaning consumers are less likely to switch to a different product if the price goes up, making the demand for the product less sensitive to price changes. This can increase revenue for the company and give them a competitive edge in the market.