Which of the following might be an example of an economic argument against advertising?
A)It causes the demand for the good to be more elastic
B)It allows the producer to earn an economic profit in the long run
C)People may be deluded into thinking that a good with a brand name is better than an otherwise identical generic brand
D)The claims made in the ads are almost always false

Question

Which of the following might be an example of an economic argument against advertising? ​
A)​It causes the demand for the good to be more elastic
B)​It allows the producer to earn an economic profit in the long run
C)​People may be deluded into thinking that a good with a brand name is better than an otherwise identical generic brand
D)​The claims made in the ads are almost always false

Quizplus · Accepted Answer

Advertising may create brand loyalty or perceptions that one brand is superior to another, even if they are identical. This can lead to consumers paying more for a branded product rather than a generic one, even though there is no real difference in quality. This can be seen as a distortion of the market and may not be beneficial for consumers or the economy as a whole.

Which of the Following Might Be an Example of an Economic