Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by
A. reducing the price elasticity of demand.
B. making demand more oligopolistic and less monopolistic.
C. increasing the income effect.
D. reducing fixed costs and increasing the gray marketing effect.
E. shifting the market from a monopoly to pure competition.
Answer: A. reducing the price elasticity of demand.
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