A discount shoe manufacturer's advertisement suggests that they are almost as good as the name brands but better value.The shoe manufacturer believes that the advertisement will

A) Make the demand for its product more elastic
B) Make his customers more price sensitive
C) Cause people to directly compare his product to the name brands
D) All of the above

Question

​A discount shoe manufacturer's advertisement suggests that they are almost as good as the name brands but better value.The shoe manufacturer believes that the advertisement willA) ​Make the demand for its product more elasticB) Make his customers more price sensitiveC) Cause people to directly compare his product to the name brandsD) ​All of the above

Teresa Fernandez · Accepted Answer

Final Answer : D, Explanation :  By suggesting that their shoes are almost as good as the name brands but better value, the manufacturer is likely to make the demand for their product more price sensitive, as customers will directly compare their product to the name brands. These factors will increase price elasticity, making option D the best choice.

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