The level of advertising will influence consumer demand. For instance, if the advertising budget is increased then consumers may be persuaded of the benefits of coffee. The outcome is the demand for coffee will increase. The strength of the relationship will depend on the advertising elasticity of demand for coffee (AED).

The increase in demand will cause the PRICE OF COFFEE TO INCREASE. This will have further impacts on other markets. For instance,

• Tea (SUBSTITUTES) DEMAND will INCREASE
• Milk (COMPLEMENTS) DEMAND will DECREASE

The starting level for advertising is set at stable. The input parameters can range between increase, stable and decrease.

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