Asked by Chasity Fields on Jul 21, 2024
Verified
Which statement is the most accurate?
A) Almost all advertising has been found by the courts to be "false and deceptive."
B) The goal of advertising is to make a firm's demand curve more elastic.
C) It is illegal to make false and deceptive advertising claims.
D) All forms of advertising are legal because advertising is a form of speech protected by the Bill of Rights.
False and Deceptive
Activities or practices that intentionally mislead consumers or misrepresent facts for gain.
Bill of Rights
A collective name for the first ten amendments to the United States Constitution, guaranteeing such rights as the freedoms of speech, assembly, and worship.
- Elucidate the function of advertising in impacting the elasticity of demand.
Verified Answer
SP
Sanjeet PandeyJul 27, 2024
Final Answer :
C
Explanation :
It is illegal to make false and deceptive advertising claims under the Federal Trade Commission Act. The courts have issued rulings against specific false or deceptive advertisements, but not against all advertising in general. The goal of advertising can vary, and not always to make a firm's demand curve more elastic. Advertising is protected by the First Amendment, but not all forms of advertising are legal if they are false or deceptive.
Learning Objectives
- Elucidate the function of advertising in impacting the elasticity of demand.
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