Advertising claiming superior quality of a product makes its demand
A)More elastic
B)Less elastic
C)Perfectly elastic
D)None of the above

Question

​Advertising claiming superior quality of a product makes its demand
A)​More elastic
B)Less elastic
C)Perfectly elastic
D)​None of the above

Quizplus · Accepted Answer

When advertising a product with superior quality, consumers may be willing to pay more for that quality. This means that the demand for the product becomes less elastic, as consumers are less likely to be price-sensitive and more likely to be willing to pay the higher price for the perceived higher quality.

​Advertising Claiming Superior Quality of a Product Makes Its Demand

Advertising Claiming Superior Quality of a Product Makes Its Demand