In the mid-1990s, Coke introduced a new soda in the soft drink market. Coke then used a new advertising campaign to associate the new soda with youth and strength. Coke was trying to:
A. shift the demand curve for competing soft drinks to the left.
B. create a perfectly competitive market for soft drinks.
C. maximize its per unit costs through advertising.
D. lower the market price of soft drinks.
Answer: A
You might also like to view...
When the Fed raises the federal funds rate, the consumption expenditure ________ and investment ________
A) increases; increases B) decreases; decreases C) does not change; does not change D) does not change; decreases E) increases; decreases
Spencer and Brander's model highlights the conventional assumption that
A) government involvement in business or in the economy tends to fail. B) government subsidies tend to waste taxpayer's money. C) government subsidies cannot create a successfully competing export. D) government tends to distort when it displaces Adam Smith's Invisible Hand. E) government subsidies can produce profits that exceed the subsidy's value.