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Which of these is likely to be an effect of advertising? Shifts out the demand curve Rotates the demand curve Shifts out and rotates the demand curve All the other answers are wrong 1 point As a basic rule of thumb, business owners should differentiate their products as much as possible when: price competition is intense. price competition is subdued. costs are low. costs are high. 1 point In which of the following situations would a company have a lower chance of losing customers when it raises the price of its product? There are low switching costs. Companies advertise their prices. Customers have many sellers to choose from. The product is differentiated across companies. 1 point The graph depicts the demand curve before advertising, D0, and the four possible demand curves that results from advertising. Priese Which of the four demand curves depicts the two ways that advertising impacts demand? D1 D2 D3 D4 1 point The overall effect of advertising on economic efficiency is positive, since it tends to lead to increased sales. indeterminate, since it leads to increased excess capacity but may also guide consumers to better decisions. negative, since it utilizes resources that could otherwise be used to expand production. Advertising is not important for efficiency. 1 point A search good is a product that: is not yet available, but consumer desires for it are known. can easily be evaluated before purchase. is difficult to locate, so it takes time to find it. is produced with rare or hard-to-find inputs. 1 point Washing powders are often heavily advertised because Consumers need to know the exact composition of washing powders. The advertising elasticity of demand of washing powders is low, so firms need to advertise a lot to increase sales. They are a luxury good. They are produced in an oligopolistic setting and are not search goods. 1 point Advertising could lead to lower prices if the advertising focusses on making demand as inelastic as possible if the advertising intensity is low if the advertising shifts the demand curve to the left if economies of scale achieved from more output exceed the advertising cost under no circumstances, since the advertising costs money point nich statement best describes how advertising can ect the demand curve for a firm with market power Through the use of advertising, the demand curve for the firm is either going to become more elastic, (i.e., flatter) or the demand curve will shift to the right. Through the use of advertising, the demand curve for the firm is either going to become more inelastic, (i.e., steeper) or the demand curve will shift to the left. Through the use of advertising, the demand curve for the firm is either going to become more inelastic, (i.e., steeper) or the demand curve will shift to the right. Through the use of advertising, the demand curve for the firm is either going to become more elastic, (i.e., flatter) or the demand curve will shift to the left. What distinguishes persuasive advertising from informative advertising? Persuasive advertising relies on statistics summarizing customer reviews. Persuasive advertising uses facts about the product to convey its excellence. Persuasive advertising focuses on emotions and provides few facts about the product. Persuasive advertising focuses on brand reputation by frequent reminders of awards won by brand