Question one

From the economist’s perspective, what is wrong with the way advert has been written?

 Simple to understand: From economist’s perspective, an advertisement must be simple. It

should be easily understandable, simple enough to grasp the message easily. From the

poster, the information is ambiguous since the “Lowcost” doesn’t give the exact meaning

of the services which has a lower cost. The starting point of the vehicle should have been

also be clear.

 Attract attention: Adverts must have the ability to pull readers in. It should be able to

attract your audience’s attention instantly. A winning advert could contain many

elements. The advert lacks the images to attract the readers.

 Emphasize benefits rather than features: Adverts must throw more light on the benefits

rather than informing its readers on the features. From the advert, only the cost of the

cities was shown on the board rather than its benefit.

 An advert must have the company’s particulars. The advert lacks the company’s name.

 Location of the advert too is a factor. The advert should have been situated at a place

nearer to an airport since target are people moving from the airport.

What is the person advertising here?

The person is advertising on the decrease in transportation cost from an airport to Heathrow,

Gatwick, Stanstead, Luton and London City.

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Is the reference to low cost airport transfers telling us that the firm owing the fleet of vehicles

have acquired them for these prices or are we being told that the price of getting to the airport for

passengers is as advertised? Explain

 The low cost is on the price of getting to the airport for passengers. This is because, the

advert highlights on “advance booking”.

How might an economist reword the advert to make it clearer (and more accurate what is being

advertised?

 Affordable Price for Transfer from or to Airport.

How does this image highlight the working of the free market?

 Free market is an economic system based on supply and demand with little or no

government control. It is a summary description of all voluntary exchanges that take

place in a given economic environment. Advertising enhances market performance by

providing useful information to consumers and by enabling firms to promote the

attributes of their products and services and, thereby, to compete better with each other.

This will allow the market to operate freely without interference from the government.

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