Other things remaining constant, if a competitor of commodity X carries out a successful advertisement campaign, the demand curve for X shall ................... .
Shift to the left
A demand curve is drawn for given values of the non-price determinants of demand: income, tastes and preferences, and the prices of related goods. A change in any of these shifts the whole curve rather than causing a movement along it.
A successful advertisement campaign by a rival producer moves consumer preferences towards the competitor's product. At every price of X, buyers want less of X than before, so the demand curve for X shifts to the left. The slope or shape of the curve is not what changes; it is the quantity demanded at each price that falls.
A rightward shift would require something that raises demand for X, such as an advertisement for X itself. A positively sloping demand curve arises only in the special Giffen case and is not caused by a rival's advertising. A curve parallel to the Y axis means perfectly inelastic demand, which advertising by a competitor does not produce.
Shift to the left option is correct.
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