Empirical studies conclude that advertising

A) raises prices in all markets.
B) can reduce the prices of many goods.
C) reduces the prices on all goods.
D) has no impact on prices.


B

Economics

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Which of the following is an outcome of economic variables not moving in sync with inflation?

a. unintended redistributions of purchasing power b. intentional redistributions of purchasing power c. better long-term planning d. decrease in blurred price signals

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According to critics of advertising, when advertising is used by a firm, the price of the firm’s product will ______.

a. fluctuate b. stabilize c. increase d. decrease

Economics