Economics 9708 · AS & A Level · Demand and supply curves

Demand and supply curves — practice question

A business runs an effective advertising campaign for a product. Which combination indicates the effect on demand or supply together with the reason?

  • Aa leftward shift in the good’s demand curve, as increased advertising cost raises the price of the product and reduces its demand
  • Ba rightward shift in the good’s supply curve, as the advertising cost of the firm increases
  • Ca rightward shift in the good’s demand curve, as successful advertising increases demand
  • Da leftward shift in the good’s supply curve, as successful advertising enables firms to sell more

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