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A successful advertising campaign induces consumers to buy more of a product at any given price than before. This is an example of:

A) An increase in supply
B) An increase in demand
C) A decrease in supply
D) A decrease in demand

1 Answer

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Final answer:

A successful advertising campaign that leads to consumers buying more at any price represents an increase in demand, which is shown by a rightward shift in the demand curve.

Step-by-step explanation:

A successful advertising campaign that persuades consumers to buy more of a product at any given price than before is an example of B) An increase in demand. This scenario describes a situation where the product becomes more desirable due to factors such as marketing, which affect consumers' tastes or preferences.

An increase in demand is represented graphically as a rightward shift in the demand curve. This shift indicates that for every price level, a higher quantity of the product is demanded than before. This is distinguished from an increase in supply, which would involve changes in production costs or technology, resulting in producers supplying more at any given price and would be represented by a rightward shift in the supply curve.

It's important to note that increased consumer need, improved product quality, or other factors that enhance product attractiveness without changing the quantity supplied are all situations that increase demand.

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