When advertising increases brand loyalty for your company's brand, then the company's demand curve becomes: more unstable. horizontal. more elastic. less elastic.
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When advertising increases brand loyalty for your company's brand, then the company's demand curve becomes:
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more unstable. |
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horizontal. |
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more elastic. |
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less elastic. |
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- Discuss to what extent you agree with the following statements. Advertising helps raise revenue for the firms and provides information to the customers; therefore, expenditures on advertising are justified.When advertising increases brand loyalty for your company's brand, then the company's demand curve becomes: horizontal. more unstable. more elastic. less elastic.How might advertising lead to a shift in the demand curve
- The graph depicts the demand curve before advertising, DO, and the four possible demand curves that results from advertising. Which of the four demand curves depicts the two ways that advertising impacts demand?- D1 - D2 - D3 - D4In advertising, a business is not only making consumers aware of the existence of the product and its positive features but is purposely trying to persuade consumers to purchase the product. As a piece of economics which of the following best characterises what advertisers are trying to do? (a) Shift the demand curve to the right and make it more income elastic; (b) Shift the demand curve to the right and make it less income elastic; (c) Shift the demand curve to the right and make it less price elastic; (d) Shift the demand curve to the right and make it more price elastic.Differentiated goods are NOT a feature of a: perfectly competitive market. monopolistically competitive market. monopolistic market. perfectly competitive market and monopolistic market.
- Firm A (A large cinema Chain) has experienced problems causing there image to worsen. Using demand curves, please explain how this would impact Firm B (A rival cinema chain).FRONT PAGE Pricing Disney+ Disney decided it wanted to provide streaming services directly to customers, rather than renting its library of films and television shows to other streaming services like Netflix. But how successful would a streaming service be? In other words, what did the demand for a "Disney+" streaming service look like? Disney knew that the number of subscribers would depend not just on the attractiveness of the Disney archives, but also on the subscription price. After doing some market research, Disney decided to launch Disney+ at a price of $6.99 a month (or $69.99 per year). When Disney+ was launched on November 12, 2019, 10 million people signed up on the first day-a resounding success! Source: News reports, October-December 2019. Suppose Disney+ changes its monthly subscription price from $7 to $9 per month. Graphically show the impact of this price change in the following markets: a. Popcorn, pizza, and other movie snacksThe elasticity of demand for a firm’s product is –2.5 and its advertising elasticity of demand is 0.2. a. Determine the firm’s optimal advertising-to-sales ratio. b. If the firm’s revenues are $40,000, what is its profit-maximizing level of advertising?
- Branding involves creating and communicating a unique image and theme for a product in the consumers' mind. Does successful branding increase Market Power?Which of the following gives the customers better products that are not offered by other competitors? Select one: a. Competitive advantage b. Branding c. Advertisements d. Marketing StrategyA publisher has the following table of demand for the next novel by one of its famous authors: Price Number of novel in demand 100 0 90 1 80 2 70 3 60 4 50 5 40 6 30 7 20 8 10 9 0 10 The author is paid $2 to write the book (Fixed Cost or FC) and the marginal cost (MC) of publishing it is a constant $10 per book. a) Calculate the total revenue, total cost, and corresponding profits for each quantity. What quantity would a profit-maximizing publisher choose? What price would he set? b) Calculate marginal revenue. How does marginal revenue compare to price? Explain. c) Plot the marginal revenue (MR), marginal cost (MC), and demand (D) curves. At what quantity do the marginal revenue and marginal cost curves intersect? What does this mean? d) Obtain the economic profits (EP) of this monopolist and graph.
