Recently, television commercials promoting toothpaste featured a well-known chef expressing satisfaction with the latest in toothpaste flavors, including citrus, herbal, mint, and cinnamon. U.S. consumers fully understand the health benefits of brushing their teeth, so makers of the various brands sold in the toothpaste market seek to emphasize how good their toothpastes taste. Manufacturers have also differentiated their toothpastes by promoting them as beauty products. Using such names as “Whitening Expressions” and “Rejuvenating Effects,” toothpaste companies battle in media ads to convince toothpaste consumers that their great-tasting brands of toothpaste will also produce the brightest smiles. If a number of consumers become convinced that a particular brand of toothpaste really will “rejuvenate” their teeth, what will happen to the price elasticity of demand for that particular toothpaste?

Recently, television commercials promoting toothpaste featured a well-known chef expressing satisfaction with the latest in toothpaste flavors, including citrus, herbal, mint, and cinnamon. U.S. consumers fully understand the health benefits of brushing their teeth, so makers of the various brands sold in the toothpaste market seek to emphasize how good their toothpastes taste. Manufacturers have also differentiated their toothpastes by promoting them as beauty products. Using such names as “Whitening Expressions” and “Rejuvenating Effects,” toothpaste companies battle in media ads to convince toothpaste consumers that their great-tasting brands of toothpaste will also produce the brightest smiles. If a number of consumers become convinced that a particular brand of toothpaste really will “rejuvenate” their teeth, what will happen to the price elasticity of demand for that particular toothpaste?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Elasticity

Section: Chapter Questions

Problem 9QP

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