Question

Suppose the Terrific Tube Company ran a very successful advertising campaign. Economic analysis would suggest that the campaign would cause the equilibrium price to _____ and the equilibrium quantity to _____.

Answer 1

Rise; Rise

Explanation: Advertisement is the process through manufacturers, marketing and sales personnel of Organisation publicize their products to enjoy patronage (rise in demand) which will help build brand loyalty and the equilibrium price of their products. It is believed that one of the best ways of increasing Demand and equilibrium price is to successfully Advertise your products and services.