Grocery store chains advertise more than convenience stores because:
A) the advertising elasticity of demand is smaller for grocery store chains than for convenience stores.
B) convenience stores have more elastic demand for their products than grocery store chains.
C) the advertising elasticity of demand for convenience stores is near zero and is much smaller than for grocery store chains.
D) all of the above
E) none of the above
C
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A year over year ________ in the buying power of money means that definitely ________ from one year to the next
A) decrease; the price level increased B) increase; inflation increased C) decrease; inflation increased D) increase; the price level increased E) Both answers A and C are correct.
A local street festival that previously sold bracelets in exchange for unlimited alcohol consumption is now concerned about the overconsumption of alcohol. If they switch to selling tickets per drink, will overall consumption at next year's festival decrease?
A. No, because the marginal cost per extra beer will decrease for consumers. B. No, because the marginal cost per extra beer will increase for consumers. C. Yes, because the marginal cost per extra beer will increase for consumers. D. Yes, because the marginal benefit per extra beer will increase for consumers.