There are two common types of advertisement that we are used to:

? Price. For example: "$1,000 cash back if you order from dealer stock before Sept 30th" or "For a limited time only, take 30% off the price of any one item in our store."

? Features For example: "Best gas economy in its class" or "Healthy whole grains and vitamins and a great taste that your children will love"

Here are four examples of a third type of advertising which does not talk about the price or features of the product:

As an Economist, how do you explain this type of ad?What are these companies trying to accomplish?Be sure to bring into your answer the concept of elasticity as well as profit and the choice of the selling price. There is a chart below: please add new Demand and Marginal Revenue lines to the chart to illustrate your ideas.

Question 5: Demand, Elasticity and Economics of Advertising There are two common types of advertisement that we are used to: . Price. For example: "$1,000 cash back if you order from dealer stock before Sept 30" or "For a limited time only, take 30% off the price of any one item in our store." . Features For example: "Best gas economy in its class" or "Healthy whole grains and vitamins and a great taste that your children will love" Here are four examples of a third type of advertising which does not talk about the price or features of the product: IT HAS TO BE HEINZ TOMATO LAVERDA 750 SF "Mother never ran out of Kellogg's Corn Flakes" O Oo CocaCola O happiness. coca-cola. As an Economist, how do you explain this type of ad? What are these companies trying to accomplish? Be sure to bring into your answer the concept of elasticity as well as profit and the choice of the selling price. There is a chart below: please add new Demand and Marginal Revenue lines to the chart to illustrate your ideas. Price Quantity --- Demand -MR MC You can move these lines into position on the graph, or if you have a stylus, you draw your own lines. Be sure to tell me what each line stands for. Type your answer and explanation here