Chapter 68, Problem 3MCQ

To determine

To choose: The correct option stating what all will advertising effect.

Answer to Problem 3MCQ

The correct option is A.

Explanation of Solution

The main reason for which the firms use advertisements is to persuade the customers that their product is superior to their competitors. So, they try to affect consumers' tastes and preferences.

So, the Correct answer is A i.e. advertising is an attempt to affect consumer tastes and preferences.

Economics Concept Introduction

Introduction:

Advertisements are defined as a piece of information on television, in a newspaper, or a picture on a wall, etc. that persuades people to purchase something or provides them with interest in a new job.