Effects of advertising on the demand curve, Microeconomics

The Effects of Advertising on the Demand Curve:

Advertising targets to:

• Change the slope of the demand curve which means make it more inelastic. This is done by generating the brand loyalty;

• Shift the demand curve to the right by tempting the people’s requirement for that particular product.

If the response of income elasticity of demand is positive, the commodity is normal and if sign is negative, the commodity is inferior.

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