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Question

Other things remaining constant, if there is a successful advertisement campaign for a commodity, the demand curve for the same shall ............................. .

This question was previously asked in
MH SET 2021 Paper 2 Mathematical Science Question Paper (26-Sep-2021)
The correct answer is

Shift to the right

A movement along a demand curve is caused only by a change in the good's own price. Every other determinant of demand, such as income, prices of related goods, tastes and preferences, and expectations, shifts the whole curve.

A successful advertisement campaign changes consumers' tastes and preferences in favour of the commodity. At every price, buyers wish to purchase a larger quantity than before. The entire demand curve therefore moves outward, that is, it shifts to the right, while its negative slope is unchanged.

A leftward shift would mean a fall in demand at every price, which is the result of an unsuccessful or negative influence on tastes. Advertising does not reverse the law of demand, so the curve does not become positively sloping. A demand curve parallel to the vertical axis would mean perfectly inelastic demand, which a promotional campaign does not create.

Shift to the right option is correct.

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