Question

When a company spends money for television commercials, it intends to shift the Group of answer choices demand curve to the right and make demand less elastic. supply curve to the right and make supply more elastic. supply curve to the right and make supply less elastic. demand curve to the right and make demand more elastic.

Answer 1

Answer:

The correct answer is letter "A": demand curve to the right and make demand less elastic.

Explanation:

Investing in advertising has one goal: increasing profits. There are many ways of increasing the revenue of a company being the most common increasing the quantity demanded. However, increasing the quantity demanded -moving the demand curve to the right- implies bringing the prices down -demand law, but we do not know how the market will react.  

Then, advertising should also help institutions marketing that will help them make their products less elastic or less prone to major changes in quantity demanded due to changes in price.