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When GM advertises its cars, the company is trying to cause a?

a. rightward shift in the supply.
b. rightward shift in the demand.
c. leftward shift in the supply.
d. leftward shift in the demand.

User Otmezger
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1 Answer

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Answer:

The correct answer is option b.

Step-by-step explanation:

When GM advertises its cars, it's trying to increase the demand for its cars.

An increase in the demand for a product is indicated by a rightward shift in its demand curve.

So advertising indicates that the company is trying to shift it's demand curve to the right.

A rightward shift in demand is caused by change in other factors while price of the product remains constant.

User Rizwan Ali
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