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When Doritos brand tortilla chips spends money for television commercials, it intends to shift the: A.demand curve to the right and make demand less elastic.B.demand curve to the right and make demand more elastic.C.supply curve to the right and make supply less elastic.D.supply curve to the right and make supply more elastic.

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When Doritos brand tortilla chips spends money for television commercials, it intends to shift the:

A.demand curve to the right and make demand less elastic.B.demand curve to the right and make demand more elastic.C.supply curve to the right and make supply less elastic.D.supply curve to the right and make supply more elastic.

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Private answer
  • demand curve to the right and make demand less elastic

Explanation:

When the curve is less elastic, it will take large changes in price to effect a change in quantity consumed. By advertising, Doritos brand increases consumer awareness and expectations regarding their product and ultimately raise the number of people willing to purchase at the right price. This increase in demand for the chips is indicated by a shift in demand curve to the right. Additionally, as demand increases, the brand intends to make the products have less elasticity such that a change in prices in the future causes minimal changes in quantity consumed.

 

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Answered on June 26, 2020 3:59 pm

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