Group items tagged

This article relates to demand, because it highlights one of the biggest advertisement opportunities for the monopolistic competition market that is the automobile industry. This market has monopolistic competition because the products are not identical, and the makers have the ability to influence prices. It is easy for firms to enter the market, and there are a lot of car-makers out there. Therefore, advertisement and recognition is key. This is a great example of advertisement.

For the past century or so, cigarettes have been an inelastic product. Due to their addictive properties, changes in the price have had a minimal effect on market demand, allowing tobacco companies to rake in boat loads of cash. In the early 1900s, big tobacco hit its peak in sales with the ability to advertise in color and through whole new mediums (newspaper, radio, TV, etc.) It was at this time that the American public and many other nations, although I don't which, started to recognize the dangers of smoking and the government begin creating restrictions. Though cigarrettes now have prices that fluctuate like gas, can't have ads on radio or television, and can't be sold to minors, consumer demand has still remained for them because of how powerful the addictive effects of nicotine are on the human brain. However, now there is an alternative to conventional smoking which replaces deadly secondhand smoke with clean water vapor. E-cigarettes are a trend that is sure to build demand and will cigarettes and cigars as elastic as a rubber band.