Sunsweet decides that prune juice has a bad image, so it launches a slick advertising campaign to

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Sunsweet decides that prune juice has a bad image, so it launches a slick advertising campaign to convince young people that prune juice is very hip. The company hires Taylor Swift, Jay-Z, and Trick Daddy to endorse its product. The campaign works! Prune juice sales soar, even though Sunsweet hasn't cut the price. Draw a budget constraint and indifference curve diagram with Sunsweet prune juice on one axis and other drinks on the other axis and show how the celebrity endorsements have changed things.

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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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