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Washing powders are often heavily advertised because -Consumers need to know the exact composition of washing powders. -The advertising elasticity of demand of washing powders is low, so firms need to advertise a lot to increase sales. -The consumer bas

Washing powders are often heavily advertised because -Consumers need to know the exact composition of washing powders. -The advertising elasticity of demand of washing powders is low, so firms need to advertise a lot to increase sales. -The consumer bas

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Washing powders are often heavily advertised because

-Consumers need to know the exact composition of washing powders.

-The advertising elasticity of demand of washing powders is low, so firms need to advertise a lot to increase sales.

-The consumer base keeps changing.

-They are produced in an oligopolistic setting and are not search goods.

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