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Question
Anderson watches advertising that makes him want to consume Bugles, a corn snack, after he hears that, for Bugles, more is better. Most people consider that all corn snack foods are not the same, and that Doritos and other corn snacks are not perfect substitutes for Bugles. Based on this information, we would most accurately say that this advertising probably caused
a. Andersons demand to be more elastic, and the corn snack industry is likely to be a monopolistically competitive industry.
b. Andersons demand to be less elastic, and the corn snack industry is likely to be a monopoly industry.
c. the corn snack industry demand to be less elastic, and Andersons demand was unaffected.
d. the corn snack industry to become a monopoly, whereas prior to advertising, it was probably perfectly competitive.
e. Andersons demand to be less elastic, and the corn snack industry is likely to be a monopolistically competitive industry.
Answer
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