Final answer:
Non-price competition, such as advertising, can help increase demand for a product and make it less price elastic. Examples include product quality, design, customer service, branding, packaging, and innovation.
Step-by-step explanation:
In the context of the question, the correct answer is a) Non-price competition. Non-price competition refers to the strategies used by firms to differentiate their products in order to increase demand and make it less price elastic. Advertising is one example of non-price competition, as it aims to highlight the unique features or benefits of a product and persuade consumers to choose it over alternative options.
Other examples of non-price competition include product quality, design, customer service, branding, packaging, and innovation. By focusing on these aspects, firms can create a perceived value for their products, which can lead to higher demand and allow them to charge higher prices.
For example, a smartphone company might differentiate its product by offering a unique camera feature or a sleek design. This can attract consumers who value these specific attributes and are willing to pay a higher price for the product, despite similar alternatives available on the market.